Correlation Between ABCO Electronics and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both ABCO Electronics and Samyung Trading 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 ABCO Electronics and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABCO Electronics Co and Samyung Trading Co, you can compare the effects of market volatilities on ABCO Electronics and Samyung Trading 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 ABCO Electronics with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABCO Electronics and Samyung Trading.
Diversification Opportunities for ABCO Electronics and Samyung Trading
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ABCO and Samyung is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ABCO Electronics Co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and ABCO Electronics 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 ABCO Electronics Co are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of ABCO Electronics i.e., ABCO Electronics and Samyung Trading go up and down completely randomly.
Pair Corralation between ABCO Electronics and Samyung Trading
Assuming the 90 days trading horizon ABCO Electronics Co is expected to under-perform the Samyung Trading. In addition to that, ABCO Electronics is 5.52 times more volatile than Samyung Trading Co. It trades about -0.19 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about -0.05 per unit of volatility. If you would invest 1,350,000 in Samyung Trading Co on September 1, 2024 and sell it today you would lose (50,000) from holding Samyung Trading Co or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABCO Electronics Co vs. Samyung Trading Co
Performance |
| Timeline |
| ABCO Electronics |
| Samyung Trading |
ABCO Electronics and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABCO Electronics and Samyung Trading
The main advantage of trading using opposite ABCO Electronics and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABCO Electronics position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| ABCO Electronics vs. Dongsin Engineering Construction | ABCO Electronics vs. Doosan Fuel Cell | ABCO Electronics vs. Daishin Balance 1 | ABCO Electronics vs. Total Soft Bank |
| Samyung Trading vs. Dongwon Metal Co | Samyung Trading vs. Shinhan Inverse Copper | Samyung Trading vs. Alton Sports CoLtd | Samyung Trading vs. Daejung Chemicals Metals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |