Correlation Between Samji Electronics and Nable Communications
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Nable Communications 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 Nable Communications 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 Nable Communications, you can compare the effects of market volatilities on Samji Electronics and Nable Communications 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 Nable Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Nable Communications.
Diversification Opportunities for Samji Electronics and Nable Communications
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Nable is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Nable Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nable Communications 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 Nable Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nable Communications has no effect on the direction of Samji Electronics i.e., Samji Electronics and Nable Communications go up and down completely randomly.
Pair Corralation between Samji Electronics and Nable Communications
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 1.04 times more return on investment than Nable Communications. However, Samji Electronics is 1.04 times more volatile than Nable Communications. It trades about 0.03 of its potential returns per unit of risk. Nable Communications is currently generating about -0.03 per unit of risk. If you would invest 785,514 in Samji Electronics Co on August 25, 2024 and sell it today you would earn a total of 56,486 from holding Samji Electronics Co or generate 7.19% 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. Nable Communications
Performance |
| Timeline |
| Samji Electronics |
| Nable Communications |
Samji Electronics and Nable Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Nable Communications
The main advantage of trading using opposite Samji Electronics and Nable Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Nable Communications 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 Nable Communications will offset losses from the drop in Nable Communications' long position.| Samji Electronics vs. Korea Real Estate | Samji Electronics vs. Korea Ratings Co | Samji Electronics vs. IQuest Co | Samji Electronics vs. Wonbang Tech Co |
| Nable Communications vs. SKONEC Entertainment Co | Nable Communications vs. DC Media Co | Nable Communications vs. Hannong Chemicals | Nable Communications vs. Kukdong Oil Chemicals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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