Correlation Between Samji Electronics and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Samji Electronics and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Duksan Hi.
Diversification Opportunities for Samji Electronics and Duksan Hi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samji and Duksan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Samji Electronics i.e., Samji Electronics and Duksan Hi go up and down completely randomly.
Pair Corralation between Samji Electronics and Duksan Hi
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.42 times more return on investment than Duksan Hi. However, Samji Electronics Co is 2.38 times less risky than Duksan Hi. It trades about 0.01 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.01 per unit of risk. If you would invest 810,180 in Samji Electronics Co on September 3, 2024 and sell it today you would earn a total of 27,820 from holding Samji Electronics Co or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Samji Electronics |
| Duksan Hi Metal |
Samji Electronics and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Duksan Hi
The main advantage of trading using opposite Samji Electronics and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi'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 |
| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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