Correlation Between Inzi Display and Samsung Biologics
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Samsung Biologics 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 Inzi Display and Samsung Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Samsung Biologics Co, you can compare the effects of market volatilities on Inzi Display and Samsung Biologics 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 Inzi Display with a short position of Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Samsung Biologics.
Diversification Opportunities for Inzi Display and Samsung Biologics
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inzi and Samsung is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Samsung Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Biologics and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with Samsung Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Biologics has no effect on the direction of Inzi Display i.e., Inzi Display and Samsung Biologics go up and down completely randomly.
Pair Corralation between Inzi Display and Samsung Biologics
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the Samsung Biologics. But the stock apears to be less risky and, when comparing its historical volatility, Inzi Display CoLtd is 1.1 times less risky than Samsung Biologics. The stock trades about -0.04 of its potential returns per unit of risk. The Samsung Biologics Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 95,300,000 in Samsung Biologics Co on October 28, 2024 and sell it today you would earn a total of 4,700,000 from holding Samsung Biologics Co or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Samsung Biologics Co
Performance |
| Timeline |
| Inzi Display CoLtd |
| Samsung Biologics |
Inzi Display and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Samsung Biologics
The main advantage of trading using opposite Inzi Display and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Samsung Biologics 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 Biologics will offset losses from the drop in Samsung Biologics' long position.| Inzi Display vs. Samsung Electronics Co | Inzi Display vs. Samsung Electronics Co | Inzi Display vs. SK Hynix | Inzi Display vs. HMM Co |
| Samsung Biologics vs. Ssangyong Information Communication | Samsung Biologics vs. ITM Semiconductor Co | Samsung Biologics vs. Clean Science co | Samsung Biologics vs. Digital Power Communications |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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