Correlation Between Samji Electronics and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Grand Korea 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 Grand Korea 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 Grand Korea Leisure, you can compare the effects of market volatilities on Samji Electronics and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Grand Korea.
Diversification Opportunities for Samji Electronics and Grand Korea
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samji and Grand is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Samji Electronics i.e., Samji Electronics and Grand Korea go up and down completely randomly.
Pair Corralation between Samji Electronics and Grand Korea
Assuming the 90 days trading horizon Samji Electronics Co is expected to under-perform the Grand Korea. But the stock apears to be less risky and, when comparing its historical volatility, Samji Electronics Co is 2.22 times less risky than Grand Korea. The stock trades about -0.22 of its potential returns per unit of risk. The Grand Korea Leisure is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,146,000 in Grand Korea Leisure on September 1, 2024 and sell it today you would earn a total of 26,000 from holding Grand Korea Leisure or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Grand Korea Leisure
Performance |
| Timeline |
| Samji Electronics |
| Grand Korea Leisure |
Samji Electronics and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Grand Korea
The main advantage of trading using opposite Samji Electronics and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea'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 |
| Grand Korea vs. Cots Technology Co | Grand Korea vs. RFTech Co | Grand Korea vs. Shinhan Inverse Silver | Grand Korea vs. Vitzro 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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