Correlation Between Sungdo Engineering and Samil CoLtd
Can any of the company-specific risk be diversified away by investing in both Sungdo Engineering and Samil CoLtd 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 Sungdo Engineering and Samil CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungdo Engineering Construction and Samil CoLtd, you can compare the effects of market volatilities on Sungdo Engineering and Samil CoLtd 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 Sungdo Engineering with a short position of Samil CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungdo Engineering and Samil CoLtd.
Diversification Opportunities for Sungdo Engineering and Samil CoLtd
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sungdo and Samil is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sungdo Engineering Constructio and Samil CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samil CoLtd and Sungdo Engineering 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 Sungdo Engineering Construction are associated (or correlated) with Samil CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samil CoLtd has no effect on the direction of Sungdo Engineering i.e., Sungdo Engineering and Samil CoLtd go up and down completely randomly.
Pair Corralation between Sungdo Engineering and Samil CoLtd
Assuming the 90 days trading horizon Sungdo Engineering is expected to generate 21.76 times less return on investment than Samil CoLtd. But when comparing it to its historical volatility, Sungdo Engineering Construction is 2.63 times less risky than Samil CoLtd. It trades about 0.05 of its potential returns per unit of risk. Samil CoLtd is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 148,300 in Samil CoLtd on September 13, 2024 and sell it today you would earn a total of 114,700 from holding Samil CoLtd or generate 77.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sungdo Engineering Constructio vs. Samil CoLtd
Performance |
| Timeline |
| Sungdo Engineering |
| Samil CoLtd |
Sungdo Engineering and Samil CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungdo Engineering and Samil CoLtd
The main advantage of trading using opposite Sungdo Engineering and Samil CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungdo Engineering position performs unexpectedly, Samil CoLtd 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 Samil CoLtd will offset losses from the drop in Samil CoLtd's long position.| Sungdo Engineering vs. Hwangkum Steel Technology | Sungdo Engineering vs. Spolytech Co | Sungdo Engineering vs. Vitzro Tech Co | Sungdo Engineering vs. Lion Chemtech Co |
| Samil CoLtd vs. Shinsegae Engineering Construction | Samil CoLtd vs. Sungdo Engineering Construction | Samil CoLtd vs. Semyung Electric Machinery | Samil CoLtd vs. Kyeryong Construction Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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