Correlation Between Hwangkum Steel and Samlip General
Can any of the company-specific risk be diversified away by investing in both Hwangkum Steel and Samlip General 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 Hwangkum Steel and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwangkum Steel Technology and Samlip General Foods, you can compare the effects of market volatilities on Hwangkum Steel and Samlip General 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 Hwangkum Steel with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Samlip General.
Diversification Opportunities for Hwangkum Steel and Samlip General
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hwangkum and Samlip is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Hwangkum Steel 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 Hwangkum Steel Technology are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Hwangkum Steel i.e., Hwangkum Steel and Samlip General go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Samlip General
Assuming the 90 days trading horizon Hwangkum Steel Technology is expected to under-perform the Samlip General. But the stock apears to be less risky and, when comparing its historical volatility, Hwangkum Steel Technology is 1.12 times less risky than Samlip General. The stock trades about -0.1 of its potential returns per unit of risk. The Samlip General Foods is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 6,129,459 in Samlip General Foods on September 2, 2024 and sell it today you would lose (1,419,459) from holding Samlip General Foods or give up 23.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Samlip General Foods
Performance |
| Timeline |
| Hwangkum Steel Technology |
| Samlip General Foods |
Hwangkum Steel and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwangkum Steel and Samlip General
The main advantage of trading using opposite Hwangkum Steel and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Hwangkum Steel vs. AptaBio Therapeutics | Hwangkum Steel vs. Daewoo SBI SPAC | Hwangkum Steel vs. Dream Security co | Hwangkum Steel vs. Microfriend |
| Samlip General vs. AptaBio Therapeutics | Samlip General vs. Daewoo SBI SPAC | Samlip General vs. Dream Security co | Samlip General vs. Microfriend |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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