Correlation Between Samsung Card and OliX PharmaceuticalsI
Can any of the company-specific risk be diversified away by investing in both Samsung Card and OliX PharmaceuticalsI at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsung Card and OliX PharmaceuticalsI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and OliX PharmaceuticalsInc, you can compare the effects of market volatilities on Samsung Card and OliX PharmaceuticalsI and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samsung Card with a short position of OliX PharmaceuticalsI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and OliX PharmaceuticalsI.
Diversification Opportunities for Samsung Card and OliX PharmaceuticalsI
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and OliX is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and OliX PharmaceuticalsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OliX PharmaceuticalsInc and Samsung Card is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samsung Card Co are associated (or correlated) with OliX PharmaceuticalsI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OliX PharmaceuticalsInc has no effect on the direction of Samsung Card i.e., Samsung Card and OliX PharmaceuticalsI go up and down completely randomly.
Pair Corralation between Samsung Card and OliX PharmaceuticalsI
Assuming the 90 days trading horizon Samsung Card is expected to generate 7.25 times less return on investment than OliX PharmaceuticalsI. But when comparing it to its historical volatility, Samsung Card Co is 5.9 times less risky than OliX PharmaceuticalsI. It trades about 0.08 of its potential returns per unit of risk. OliX PharmaceuticalsInc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,733,000 in OliX PharmaceuticalsInc on September 3, 2024 and sell it today you would earn a total of 367,000 from holding OliX PharmaceuticalsInc or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Card Co vs. OliX PharmaceuticalsInc
Performance |
| Timeline |
| Samsung Card |
| OliX PharmaceuticalsInc |
Samsung Card and OliX PharmaceuticalsI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and OliX PharmaceuticalsI
The main advantage of trading using opposite Samsung Card and OliX PharmaceuticalsI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, OliX PharmaceuticalsI can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OliX PharmaceuticalsI will offset losses from the drop in OliX PharmaceuticalsI's long position.| Samsung Card vs. CKH Food Health | Samsung Card vs. InnoTherapy | Samsung Card vs. INNOX Advanced Materials | Samsung Card vs. LG Household Healthcare |
| OliX PharmaceuticalsI vs. Samsung Biologics Co | OliX PharmaceuticalsI vs. SK Bioscience Co | OliX PharmaceuticalsI vs. Sk Biopharmaceuticals Co | OliX PharmaceuticalsI vs. ABL Bio |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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