Correlation Between Samil CoLtd and Nice Information
Can any of the company-specific risk be diversified away by investing in both Samil CoLtd and Nice Information 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 Samil CoLtd and Nice Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samil CoLtd and Nice Information Telecommunication, you can compare the effects of market volatilities on Samil CoLtd and Nice Information 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 Samil CoLtd with a short position of Nice Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samil CoLtd and Nice Information.
Diversification Opportunities for Samil CoLtd and Nice Information
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samil and Nice is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samil CoLtd and Nice Information Telecommunica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice Information Tel and Samil CoLtd 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 Samil CoLtd are associated (or correlated) with Nice Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice Information Tel has no effect on the direction of Samil CoLtd i.e., Samil CoLtd and Nice Information go up and down completely randomly.
Pair Corralation between Samil CoLtd and Nice Information
Assuming the 90 days trading horizon Samil CoLtd is expected to generate 3.51 times more return on investment than Nice Information. However, Samil CoLtd is 3.51 times more volatile than Nice Information Telecommunication. It trades about 0.17 of its potential returns per unit of risk. Nice Information Telecommunication is currently generating about -0.22 per unit of risk. If you would invest 150,000 in Samil CoLtd on September 5, 2024 and sell it today you would earn a total of 10,100 from holding Samil CoLtd or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samil CoLtd vs. Nice Information Telecommunica
Performance |
| Timeline |
| Samil CoLtd |
| Nice Information Tel |
Samil CoLtd and Nice Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samil CoLtd and Nice Information
The main advantage of trading using opposite Samil CoLtd and Nice Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samil CoLtd position performs unexpectedly, Nice Information 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 Nice Information will offset losses from the drop in Nice Information's long position.| Samil CoLtd vs. Nice Information Telecommunication | Samil CoLtd vs. LG Household Healthcare | Samil CoLtd vs. Visang Education | Samil CoLtd vs. Lotte Chilsung Beverage |
| Nice Information vs. Dongsin Engineering Construction | Nice Information vs. Doosan Fuel Cell | Nice Information vs. Daishin Balance 1 | Nice Information vs. Total Soft Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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