Correlation Between SFA Semicon and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both SFA Semicon 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 SFA Semicon and Samji Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFA Semicon Co and Samji Electronics Co, you can compare the effects of market volatilities on SFA Semicon 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 SFA Semicon with a short position of Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFA Semicon and Samji Electronics.
Diversification Opportunities for SFA Semicon and Samji Electronics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SFA and Samji is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SFA Semicon 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 SFA Semicon 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 SFA Semicon 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 SFA Semicon i.e., SFA Semicon and Samji Electronics go up and down completely randomly.
Pair Corralation between SFA Semicon and Samji Electronics
Assuming the 90 days trading horizon SFA Semicon is expected to generate 1.43 times less return on investment than Samji Electronics. In addition to that, SFA Semicon is 3.12 times more volatile than Samji Electronics Co. It trades about 0.13 of its total potential returns per unit of risk. Samji Electronics Co is currently generating about 0.57 per unit of volatility. If you would invest 849,000 in Samji Electronics Co on November 3, 2024 and sell it today you would earn a total of 82,000 from holding Samji Electronics Co or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SFA Semicon Co vs. Samji Electronics Co
Performance |
| Timeline |
| SFA Semicon |
| Samji Electronics |
SFA Semicon and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFA Semicon and Samji Electronics
The main advantage of trading using opposite SFA Semicon and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFA Semicon 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.| SFA Semicon vs. SFA Engineering | SFA Semicon vs. Nepes | SFA Semicon vs. LEENO Industrial | SFA Semicon vs. Seoul Semiconductor Co |
| Samji Electronics vs. SFA Semicon Co | Samji Electronics vs. Seronics Co | Samji Electronics vs. COWELL FASHION CoLtd | Samji Electronics vs. Seohee Construction 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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