Correlation Between Samji Electronics and CKH Food
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on Samji Electronics and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and CKH Food.
Diversification Opportunities for Samji Electronics and CKH Food
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samji and CKH is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Samji Electronics i.e., Samji Electronics and CKH Food go up and down completely randomly.
Pair Corralation between Samji Electronics and CKH Food
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.51 times more return on investment than CKH Food. However, Samji Electronics Co is 1.98 times less risky than CKH Food. It trades about 0.52 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.13 per unit of risk. If you would invest 863,000 in Samji Electronics Co on October 30, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. CKH Food Health
Performance |
| Timeline |
| Samji Electronics |
| CKH Food Health |
Samji Electronics and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and CKH Food
The main advantage of trading using opposite Samji Electronics and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food'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 |
| CKH Food vs. SAMG Entertainment Co | CKH Food vs. SK Chemicals Co | CKH Food vs. Barunson Entertainment Arts | CKH Food vs. SM Entertainment 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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