Correlation Between Samji Electronics and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and PJ Metal 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 PJ Metal 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 PJ Metal Co, you can compare the effects of market volatilities on Samji Electronics and PJ Metal 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 PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and PJ Metal.
Diversification Opportunities for Samji Electronics and PJ Metal
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samji and 128660 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ 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 PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Samji Electronics i.e., Samji Electronics and PJ Metal go up and down completely randomly.
Pair Corralation between Samji Electronics and PJ Metal
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 1.31 times more return on investment than PJ Metal. However, Samji Electronics is 1.31 times more volatile than PJ Metal Co. It trades about 0.14 of its potential returns per unit of risk. PJ Metal Co is currently generating about 0.06 per unit of risk. If you would invest 931,000 in Samji Electronics Co on December 1, 2024 and sell it today you would earn a total of 75,000 from holding Samji Electronics Co or generate 8.06% 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. PJ Metal Co
Performance |
| Timeline |
| Samji Electronics |
| PJ Metal |
Samji Electronics and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and PJ Metal
The main advantage of trading using opposite Samji Electronics and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal'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 |
| PJ Metal vs. Kyeryong Construction Industrial | PJ Metal vs. KakaoBank Corp | PJ Metal vs. Songwon Industrial Co | PJ Metal vs. Hanwha Life Insurance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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