Correlation Between Hankukpackage and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Samsung 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 Hankukpackage and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Samsung Electronics Co, you can compare the effects of market volatilities on Hankukpackage and Samsung 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 Hankukpackage with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Samsung Electronics.
Diversification Opportunities for Hankukpackage and Samsung Electronics
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hankukpackage and Samsung is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Hankukpackage 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 Hankukpackage Co are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Hankukpackage i.e., Hankukpackage and Samsung Electronics go up and down completely randomly.
Pair Corralation between Hankukpackage and Samsung Electronics
Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.46 times more return on investment than Samsung Electronics. However, Hankukpackage Co is 2.16 times less risky than Samsung Electronics. It trades about 0.01 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.06 per unit of risk. If you would invest 185,600 in Hankukpackage Co on August 30, 2024 and sell it today you would earn a total of 400.00 from holding Hankukpackage Co or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. Samsung Electronics Co
Performance |
| Timeline |
| Hankukpackage |
| Samsung Electronics |
Hankukpackage and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Samsung Electronics
The main advantage of trading using opposite Hankukpackage and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Samsung 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Shinhan WTI Futures | Hankukpackage vs. Finebesteel |
| Samsung Electronics vs. LG Corp | Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. Busan Ind | Samsung Electronics vs. Mirae Asset Daewoo |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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