Correlation Between Daou Data and Samsung Card
Can any of the company-specific risk be diversified away by investing in both Daou Data and Samsung Card 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 Daou Data and Samsung Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daou Data Corp and Samsung Card Co, you can compare the effects of market volatilities on Daou Data and Samsung Card 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 Daou Data with a short position of Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Data and Samsung Card.
Diversification Opportunities for Daou Data and Samsung Card
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daou and Samsung is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Daou Data Corp and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card and Daou Data 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 Daou Data Corp are associated (or correlated) with Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of Daou Data i.e., Daou Data and Samsung Card go up and down completely randomly.
Pair Corralation between Daou Data and Samsung Card
Assuming the 90 days trading horizon Daou Data is expected to generate 15.03 times less return on investment than Samsung Card. In addition to that, Daou Data is 1.08 times more volatile than Samsung Card Co. It trades about 0.03 of its total potential returns per unit of risk. Samsung Card Co is currently generating about 0.41 per unit of volatility. If you would invest 4,005,000 in Samsung Card Co on November 9, 2024 and sell it today you would earn a total of 305,000 from holding Samsung Card Co or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Data Corp vs. Samsung Card Co
Performance |
| Timeline |
| Daou Data Corp |
| Samsung Card |
Daou Data and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Data and Samsung Card
The main advantage of trading using opposite Daou Data and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Data position performs unexpectedly, Samsung Card 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 Samsung Card will offset losses from the drop in Samsung Card's long position.| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
| Samsung Card vs. Incar Financial Service | Samsung Card vs. KPX Green Chemical | Samsung Card vs. SH Energy Chemical | Samsung Card vs. Pureun Mutual Savings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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