Correlation Between Samji Electronics and Dream Security
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Dream Security 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 Dream Security 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 Dream Security co, you can compare the effects of market volatilities on Samji Electronics and Dream Security 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 Dream Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Dream Security.
Diversification Opportunities for Samji Electronics and Dream Security
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Dream is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Dream Security co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Security co 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 Dream Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Security co has no effect on the direction of Samji Electronics i.e., Samji Electronics and Dream Security go up and down completely randomly.
Pair Corralation between Samji Electronics and Dream Security
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.23 times more return on investment than Dream Security. However, Samji Electronics Co is 4.3 times less risky than Dream Security. It trades about 0.56 of its potential returns per unit of risk. Dream Security co is currently generating about -0.17 per unit of risk. If you would invest 852,000 in Samji Electronics Co on November 4, 2024 and sell it today you would earn a total of 79,000 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. Dream Security co
Performance |
| Timeline |
| Samji Electronics |
| Dream Security co |
Samji Electronics and Dream Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Dream Security
The main advantage of trading using opposite Samji Electronics and Dream Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Dream Security 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 Dream Security will offset losses from the drop in Dream Security'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 |
| Dream Security vs. MetaLabs Co | Dream Security vs. HB Technology TD | Dream Security vs. Hanjoo Light Metal | Dream Security vs. Shinhan Inverse Copper |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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