Correlation Between Shinsegae Engineering and Samil CoLtd
Can any of the company-specific risk be diversified away by investing in both Shinsegae Engineering and Samil CoLtd 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 Shinsegae Engineering and Samil CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Engineering Construction and Samil CoLtd, you can compare the effects of market volatilities on Shinsegae Engineering and Samil CoLtd 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 Shinsegae Engineering with a short position of Samil CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Engineering and Samil CoLtd.
Diversification Opportunities for Shinsegae Engineering and Samil CoLtd
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shinsegae and Samil is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Engineering Construc and Samil CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samil CoLtd and Shinsegae Engineering 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 Shinsegae Engineering Construction are associated (or correlated) with Samil CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samil CoLtd has no effect on the direction of Shinsegae Engineering i.e., Shinsegae Engineering and Samil CoLtd go up and down completely randomly.
Pair Corralation between Shinsegae Engineering and Samil CoLtd
Assuming the 90 days trading horizon Shinsegae Engineering Construction is expected to under-perform the Samil CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Shinsegae Engineering Construction is 93.73 times less risky than Samil CoLtd. The stock trades about -0.16 of its potential returns per unit of risk. The Samil CoLtd is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 148,300 in Samil CoLtd on September 13, 2024 and sell it today you would earn a total of 114,700 from holding Samil CoLtd or generate 77.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shinsegae Engineering Construc vs. Samil CoLtd
Performance |
| Timeline |
| Shinsegae Engineering |
| Samil CoLtd |
Shinsegae Engineering and Samil CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Engineering and Samil CoLtd
The main advantage of trading using opposite Shinsegae Engineering and Samil CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Engineering position performs unexpectedly, Samil CoLtd 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 Samil CoLtd will offset losses from the drop in Samil CoLtd's long position.| Shinsegae Engineering vs. Samsung Electronics Co | Shinsegae Engineering vs. Samsung Electronics Co | Shinsegae Engineering vs. SK Hynix | Shinsegae Engineering vs. POSCO Holdings |
| Samil CoLtd vs. Shinsegae Engineering Construction | Samil CoLtd vs. Sungdo Engineering Construction | Samil CoLtd vs. Semyung Electric Machinery | Samil CoLtd vs. Kyeryong Construction Industrial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |