Correlation Between Samji Electronics and Design
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Design 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 Design 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 Design Co, you can compare the effects of market volatilities on Samji Electronics and Design 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 Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Design.
Diversification Opportunities for Samji Electronics and Design
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samji and Design is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Design Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Design 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 Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Design has no effect on the direction of Samji Electronics i.e., Samji Electronics and Design go up and down completely randomly.
Pair Corralation between Samji Electronics and Design
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.16 times more return on investment than Design. However, Samji Electronics Co is 6.32 times less risky than Design. It trades about 0.02 of its potential returns per unit of risk. Design Co is currently generating about -0.01 per unit of risk. If you would invest 772,233 in Samji Electronics Co on September 12, 2024 and sell it today you would earn a total of 53,767 from holding Samji Electronics Co or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.53% |
| Values | Daily Returns |
Samji Electronics Co vs. Design Co
Performance |
| Timeline |
| Samji Electronics |
| Design |
Samji Electronics and Design Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Design
The main advantage of trading using opposite Samji Electronics and Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Design 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 Design will offset losses from the drop in Design's long position.| Samji Electronics vs. Cube Entertainment | Samji Electronics vs. Dreamus Company | Samji Electronics vs. LG Energy Solution | Samji Electronics vs. Dongwon System |
| Design vs. Woori Technology Investment | Design vs. SV Investment | Design vs. DB Insurance Co | Design vs. LG Display 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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