Correlation Between Samji Electronics and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Dongil Technology 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 Dongil Technology 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 Dongil Technology, you can compare the effects of market volatilities on Samji Electronics and Dongil Technology 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 Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Dongil Technology.
Diversification Opportunities for Samji Electronics and Dongil Technology
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samji and Dongil is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology 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 Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of Samji Electronics i.e., Samji Electronics and Dongil Technology go up and down completely randomly.
Pair Corralation between Samji Electronics and Dongil Technology
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.96 times more return on investment than Dongil Technology. However, Samji Electronics Co is 1.05 times less risky than Dongil Technology. It trades about -0.22 of its potential returns per unit of risk. Dongil Technology is currently generating about -0.29 per unit of risk. If you would invest 875,000 in Samji Electronics Co on September 1, 2024 and sell it today you would lose (37,000) from holding Samji Electronics Co or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Dongil Technology
Performance |
| Timeline |
| Samji Electronics |
| Dongil Technology |
Samji Electronics and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Dongil Technology
The main advantage of trading using opposite Samji Electronics and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Dongil Technology 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 Dongil Technology will offset losses from the drop in Dongil Technology'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 |
| Dongil Technology vs. Dongsin Engineering Construction | Dongil Technology vs. Doosan Fuel Cell | Dongil Technology vs. Daishin Balance 1 | Dongil Technology vs. Total Soft Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |