Correlation Between SAMJIN and DSC Investment
Can any of the company-specific risk be diversified away by investing in both SAMJIN and DSC Investment 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 SAMJIN and DSC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMJIN Co and DSC Investment, you can compare the effects of market volatilities on SAMJIN and DSC Investment 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 SAMJIN with a short position of DSC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMJIN and DSC Investment.
Diversification Opportunities for SAMJIN and DSC Investment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SAMJIN and DSC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SAMJIN Co and DSC Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSC Investment and SAMJIN 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 SAMJIN Co are associated (or correlated) with DSC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSC Investment has no effect on the direction of SAMJIN i.e., SAMJIN and DSC Investment go up and down completely randomly.
Pair Corralation between SAMJIN and DSC Investment
Assuming the 90 days trading horizon SAMJIN Co is expected to generate 0.96 times more return on investment than DSC Investment. However, SAMJIN Co is 1.04 times less risky than DSC Investment. It trades about 0.0 of its potential returns per unit of risk. DSC Investment is currently generating about -0.01 per unit of risk. If you would invest 523,294 in SAMJIN Co on September 3, 2024 and sell it today you would lose (100,794) from holding SAMJIN Co or give up 19.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMJIN Co vs. DSC Investment
Performance |
| Timeline |
| SAMJIN |
| DSC Investment |
SAMJIN and DSC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMJIN and DSC Investment
The main advantage of trading using opposite SAMJIN and DSC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMJIN position performs unexpectedly, DSC Investment 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 DSC Investment will offset losses from the drop in DSC Investment's long position.| SAMJIN vs. DSC Investment | SAMJIN vs. SV Investment | SAMJIN vs. Woori Technology Investment | SAMJIN vs. SBI Investment KOREA |
| DSC Investment vs. Nh Investment And | DSC Investment vs. Hanwha InvestmentSecurities Co | DSC Investment vs. Samsung Special Purpose | DSC Investment vs. YeSUN Tech CoLtd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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