Correlation Between Seohee Construction and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Seohee Construction and Samji Electronics 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 Seohee Construction and Samji Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seohee Construction Co and Samji Electronics Co, you can compare the effects of market volatilities on Seohee Construction and Samji Electronics 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 Seohee Construction with a short position of Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seohee Construction and Samji Electronics.
Diversification Opportunities for Seohee Construction and Samji Electronics
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Seohee and Samji is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Seohee Construction Co and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji Electronics and Seohee Construction 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 Seohee Construction Co are associated (or correlated) with Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Seohee Construction i.e., Seohee Construction and Samji Electronics go up and down completely randomly.
Pair Corralation between Seohee Construction and Samji Electronics
Assuming the 90 days trading horizon Seohee Construction Co is expected to generate 2.19 times more return on investment than Samji Electronics. However, Seohee Construction is 2.19 times more volatile than Samji Electronics Co. It trades about 0.18 of its potential returns per unit of risk. Samji Electronics Co is currently generating about -0.22 per unit of risk. If you would invest 141,400 in Seohee Construction Co on September 1, 2024 and sell it today you would earn a total of 10,300 from holding Seohee Construction Co or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seohee Construction Co vs. Samji Electronics Co
Performance |
| Timeline |
| Seohee Construction |
| Samji Electronics |
Seohee Construction and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seohee Construction and Samji Electronics
The main advantage of trading using opposite Seohee Construction and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seohee Construction position performs unexpectedly, Samji Electronics 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 Samji Electronics will offset losses from the drop in Samji Electronics' long position.| Seohee Construction vs. KCC Engineering Construction | Seohee Construction vs. Samchuly Bicycle Co | Seohee Construction vs. SFA Engineering | Seohee Construction vs. SEOHAN Const EngcoLtd |
| Samji Electronics vs. Dongsin Engineering Construction | Samji Electronics vs. Doosan Fuel Cell | Samji Electronics vs. Daishin Balance 1 | Samji Electronics vs. Total Soft Bank |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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