Correlation Between Samji Electronics and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Pureun Mutual 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 Samji Electronics and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samji Electronics Co and Pureun Mutual Savings, you can compare the effects of market volatilities on Samji Electronics and Pureun Mutual 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 Samji Electronics with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Pureun Mutual.
Diversification Opportunities for Samji Electronics and Pureun Mutual
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Pureun is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and Samji 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 Samji Electronics Co are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Samji Electronics i.e., Samji Electronics and Pureun Mutual go up and down completely randomly.
Pair Corralation between Samji Electronics and Pureun Mutual
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 1.88 times more return on investment than Pureun Mutual. However, Samji Electronics is 1.88 times more volatile than Pureun Mutual Savings. It trades about 0.49 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about -0.51 per unit of risk. If you would invest 871,000 in Samji Electronics Co on November 7, 2024 and sell it today you would earn a total of 60,000 from holding Samji Electronics Co or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| Samji Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Pureun Mutual Savings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samji Electronics and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Pureun Mutual
The main advantage of trading using opposite Samji Electronics and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.The idea behind Samji Electronics Co and Pureun Mutual Savings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pureun Mutual vs. Aekyung Petrochemical Co | Pureun Mutual vs. Dongbang Transport Logistics | Pureun Mutual vs. TK Chemical | Pureun Mutual vs. Korea Petro Chemical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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