Correlation Between BIT Computer and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Samsung SDI 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 BIT Computer and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Samsung SDI, you can compare the effects of market volatilities on BIT Computer and Samsung SDI 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 BIT Computer with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Samsung SDI.
Diversification Opportunities for BIT Computer and Samsung SDI
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIT and Samsung is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and BIT Computer 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 BIT Computer Co are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of BIT Computer i.e., BIT Computer and Samsung SDI go up and down completely randomly.
Pair Corralation between BIT Computer and Samsung SDI
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 0.79 times more return on investment than Samsung SDI. However, BIT Computer Co is 1.26 times less risky than Samsung SDI. It trades about 0.09 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.06 per unit of risk. If you would invest 474,891 in BIT Computer Co on October 11, 2024 and sell it today you would earn a total of 38,109 from holding BIT Computer Co or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Samsung SDI
Performance |
| Timeline |
| BIT Computer |
| Samsung SDI |
BIT Computer and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Samsung SDI
The main advantage of trading using opposite BIT Computer and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Samsung SDI 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 SDI will offset losses from the drop in Samsung SDI's long position.| BIT Computer vs. SeAH Besteel Corp | BIT Computer vs. Koryo Credit Information | BIT Computer vs. Han Kook Steel | BIT Computer vs. Samhyun Steel Co |
| Samsung SDI vs. KEPCO Engineering Construction | Samsung SDI vs. Woorim Machinery Co | Samsung SDI vs. BIT Computer Co | Samsung SDI vs. Sangsin Energy Display |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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