Correlation Between Samji Electronics and Insung Information
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Insung Information 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 Insung Information 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 Insung Information Co, you can compare the effects of market volatilities on Samji Electronics and Insung Information 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 Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Insung Information.
Diversification Opportunities for Samji Electronics and Insung Information
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samji and Insung is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung Information 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 Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of Samji Electronics i.e., Samji Electronics and Insung Information go up and down completely randomly.
Pair Corralation between Samji Electronics and Insung Information
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.27 times more return on investment than Insung Information. However, Samji Electronics Co is 3.68 times less risky than Insung Information. It trades about -0.02 of its potential returns per unit of risk. Insung Information Co is currently generating about -0.03 per unit of risk. If you would invest 881,000 in Samji Electronics Co on August 29, 2024 and sell it today you would lose (29,000) from holding Samji Electronics Co or give up 3.29% 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. Insung Information Co
Performance |
| Timeline |
| Samji Electronics |
| Insung Information |
Samji Electronics and Insung Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Insung Information
The main advantage of trading using opposite Samji Electronics and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Insung Information 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 Insung Information will offset losses from the drop in Insung Information'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 |
| Insung Information vs. Korea Real Estate | Insung Information vs. Korea Ratings Co | Insung Information vs. IQuest Co | Insung Information vs. Wonbang Tech 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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