Correlation Between Samji Electronics and Korea Investment
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Korea Investment 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 Korea Investment 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 Korea Investment Holdings, you can compare the effects of market volatilities on Samji Electronics and Korea Investment 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 Korea Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Korea Investment.
Diversification Opportunities for Samji Electronics and Korea Investment
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samji and Korea is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Korea Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Investment Holdings 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 Korea Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Investment Holdings has no effect on the direction of Samji Electronics i.e., Samji Electronics and Korea Investment go up and down completely randomly.
Pair Corralation between Samji Electronics and Korea Investment
Assuming the 90 days trading horizon Samji Electronics Co is expected to under-perform the Korea Investment. But the stock apears to be less risky and, when comparing its historical volatility, Samji Electronics Co is 1.11 times less risky than Korea Investment. The stock trades about -0.14 of its potential returns per unit of risk. The Korea Investment Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,300,000 in Korea Investment Holdings on August 31, 2024 and sell it today you would earn a total of 100,000 from holding Korea Investment Holdings or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Korea Investment Holdings
Performance |
| Timeline |
| Samji Electronics |
| Korea Investment Holdings |
Samji Electronics and Korea Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Korea Investment
The main advantage of trading using opposite Samji Electronics and Korea Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Korea Investment 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 Korea Investment will offset losses from the drop in Korea Investment'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 |
| Korea Investment vs. AptaBio Therapeutics | Korea Investment vs. Daewoo SBI SPAC | Korea Investment vs. Dream Security co | Korea Investment vs. Microfriend |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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