Correlation Between Samji Electronics and Vissem Electronics
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Vissem Electronics 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 Vissem Electronics 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 Vissem Electronics Co, you can compare the effects of market volatilities on Samji Electronics and Vissem Electronics 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 Vissem Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Vissem Electronics.
Diversification Opportunities for Samji Electronics and Vissem Electronics
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Vissem is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Vissem Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vissem Electronics 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 Vissem Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vissem Electronics has no effect on the direction of Samji Electronics i.e., Samji Electronics and Vissem Electronics go up and down completely randomly.
Pair Corralation between Samji Electronics and Vissem Electronics
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.86 times more return on investment than Vissem Electronics. However, Samji Electronics Co is 1.16 times less risky than Vissem Electronics. It trades about 0.52 of its potential returns per unit of risk. Vissem Electronics Co is currently generating about 0.13 per unit of risk. If you would invest 863,000 in Samji Electronics Co on October 30, 2024 and sell it today you would earn a total of 80,000 from holding Samji Electronics Co or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Vissem Electronics Co
Performance |
| Timeline |
| Samji Electronics |
| Vissem Electronics |
Samji Electronics and Vissem Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Vissem Electronics
The main advantage of trading using opposite Samji Electronics and Vissem Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Vissem Electronics 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 Vissem Electronics will offset losses from the drop in Vissem Electronics' long position.| Samji Electronics vs. SFA Semicon Co | Samji Electronics vs. Seohee Construction Co | Samji Electronics vs. Simmtech Holdings Co |
| Vissem Electronics vs. TJ media Co | Vissem Electronics vs. Infinitt Healthcare Co | Vissem Electronics vs. LG Household Healthcare | Vissem Electronics vs. ChipsMedia |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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