Correlation Between Shinsegae Information and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information 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 Shinsegae Information and Samsung SDI 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 Samsung SDI, you can compare the effects of market volatilities on Shinsegae Information 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 Shinsegae Information with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and Samsung SDI.
Diversification Opportunities for Shinsegae Information and Samsung SDI
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinsegae and Samsung is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI 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 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 Shinsegae Information i.e., Shinsegae Information and Samsung SDI go up and down completely randomly.
Pair Corralation between Shinsegae Information and Samsung SDI
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to generate 0.97 times more return on investment than Samsung SDI. However, Shinsegae Information Communication is 1.03 times less risky than Samsung SDI. It trades about 0.0 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.07 per unit of risk. If you would invest 1,501,004 in Shinsegae Information Communication on November 19, 2024 and sell it today you would lose (236,004) from holding Shinsegae Information Communication or give up 15.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shinsegae Information Communic vs. Samsung SDI
Performance |
| Timeline |
| Shinsegae Information |
| Samsung SDI |
Shinsegae Information and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and Samsung SDI
The main advantage of trading using opposite Shinsegae Information and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information 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.| Shinsegae Information vs. Hana Technology Co | Shinsegae Information vs. Hotel Shilla Co | Shinsegae Information vs. SM Entertainment Co | Shinsegae Information vs. Cuckoo Homesys Co |
| Samsung SDI vs. Kumho Petro Chemical | Samsung SDI vs. Daejung Chemicals Metals | Samsung SDI vs. Seah Steel Corp | Samsung SDI vs. Fine Besteel Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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