Correlation Between Shinsegae Information and Samlip General
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information 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 Shinsegae Information and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Information Communication and Samlip General Foods, you can compare the effects of market volatilities on Shinsegae Information 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 Shinsegae Information with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Samlip General.
Diversification Opportunities for Shinsegae Information and Samlip General
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shinsegae and Samlip is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic 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 Shinsegae Information 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 Information Communication 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 Shinsegae Information i.e., Shinsegae Information and Samlip General go up and down completely randomly.
Pair Corralation between Shinsegae Information and Samlip General
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the Samlip General. In addition to that, Shinsegae Information is 1.13 times more volatile than Samlip General Foods. It trades about -0.12 of its total potential returns per unit of risk. Samlip General Foods is currently generating about -0.06 per unit of volatility. If you would invest 5,050,000 in Samlip General Foods on September 13, 2024 and sell it today you would lose (235,000) from holding Samlip General Foods or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Samlip General Foods
Performance |
| Timeline |
| Shinsegae Information |
| Samlip General Foods |
Shinsegae Information and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Samlip General
The main advantage of trading using opposite Shinsegae Information and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information 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.| Shinsegae Information vs. DB Insurance Co | Shinsegae Information vs. Hyundai Home Shopping | Shinsegae Information vs. Dongbu Insurance Co | Shinsegae Information vs. Cheryong Industrial CoLtd |
| Samlip General vs. Hana Financial | Samlip General vs. Koryo Credit Information | Samlip General vs. InfoBank | Samlip General vs. KB Financial Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |