Correlation Between Samji Electronics and Sajo Seafood
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Sajo Seafood 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 Sajo Seafood 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 Sajo Seafood, you can compare the effects of market volatilities on Samji Electronics and Sajo Seafood 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 Sajo Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Sajo Seafood.
Diversification Opportunities for Samji Electronics and Sajo Seafood
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Sajo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Sajo Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sajo Seafood 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 Sajo Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sajo Seafood has no effect on the direction of Samji Electronics i.e., Samji Electronics and Sajo Seafood go up and down completely randomly.
Pair Corralation between Samji Electronics and Sajo Seafood
Assuming the 90 days trading horizon Samji Electronics is expected to generate 1.47 times less return on investment than Sajo Seafood. But when comparing it to its historical volatility, Samji Electronics Co is 2.49 times less risky than Sajo Seafood. It trades about 0.02 of its potential returns per unit of risk. Sajo Seafood is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 509,000 in Sajo Seafood on October 13, 2024 and sell it today you would lose (48,000) from holding Sajo Seafood or give up 9.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Sajo Seafood
Performance |
| Timeline |
| Samji Electronics |
| Sajo Seafood |
Samji Electronics and Sajo Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Sajo Seafood
The main advantage of trading using opposite Samji Electronics and Sajo Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Sajo Seafood 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 Sajo Seafood will offset losses from the drop in Sajo Seafood's long position.| Samji Electronics vs. SFA Semicon Co | Samji Electronics vs. Seronics Co | Samji Electronics vs. COWELL FASHION CoLtd | Samji Electronics vs. Seohee Construction Co |
| Sajo Seafood vs. Shinil Electronics Co | Sajo Seafood vs. Daewoo Electronic Components | Sajo Seafood vs. Hankukpackage Co | Sajo Seafood vs. Samji Electronics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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