Correlation Between Samji Electronics and Hironic
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Hironic 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 Hironic 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 Hironic Co, you can compare the effects of market volatilities on Samji Electronics and Hironic 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 Hironic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Hironic.
Diversification Opportunities for Samji Electronics and Hironic
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Hironic is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Hironic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hironic 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 Hironic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hironic has no effect on the direction of Samji Electronics i.e., Samji Electronics and Hironic go up and down completely randomly.
Pair Corralation between Samji Electronics and Hironic
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.51 times more return on investment than Hironic. However, Samji Electronics Co is 1.95 times less risky than Hironic. It trades about 0.52 of its potential returns per unit of risk. Hironic Co is currently generating about 0.12 per unit of risk. If you would invest 863,000 in Samji Electronics Co on October 29, 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. Hironic Co
Performance |
| Timeline |
| Samji Electronics |
| Hironic |
Samji Electronics and Hironic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Hironic
The main advantage of trading using opposite Samji Electronics and Hironic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Hironic 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 Hironic will offset losses from the drop in Hironic'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 |
| Hironic vs. IC Technology Co | Hironic vs. Korea Air Svc | Hironic vs. Daou Technology | Hironic vs. Foodnamoo |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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