Correlation Between Samji Electronics and Daou Data
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Daou Data 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 Daou Data 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 Daou Data Corp, you can compare the effects of market volatilities on Samji Electronics and Daou Data 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 Daou Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Daou Data.
Diversification Opportunities for Samji Electronics and Daou Data
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samji and Daou is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Daou Data Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daou Data Corp 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 Daou Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daou Data Corp has no effect on the direction of Samji Electronics i.e., Samji Electronics and Daou Data go up and down completely randomly.
Pair Corralation between Samji Electronics and Daou Data
Assuming the 90 days trading horizon Samji Electronics Co is expected to under-perform the Daou Data. But the stock apears to be less risky and, when comparing its historical volatility, Samji Electronics Co is 1.23 times less risky than Daou Data. The stock trades about -0.22 of its potential returns per unit of risk. The Daou Data Corp is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,095,000 in Daou Data Corp on September 1, 2024 and sell it today you would lose (14,000) from holding Daou Data Corp or give up 1.28% 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. Daou Data Corp
Performance |
| Timeline |
| Samji Electronics |
| Daou Data Corp |
Samji Electronics and Daou Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Daou Data
The main advantage of trading using opposite Samji Electronics and Daou Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Daou Data 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 Daou Data will offset losses from the drop in Daou Data's long position.| Samji Electronics vs. Dongsin Engineering Construction | Samji Electronics vs. Doosan Fuel Cell | Samji Electronics vs. Daishin Balance 1 | Samji Electronics vs. Total Soft Bank |
| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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