Correlation Between Ecoplastic and SAMRYOONG CoLtd
Can any of the company-specific risk be diversified away by investing in both Ecoplastic and SAMRYOONG CoLtd 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 Ecoplastic and SAMRYOONG CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecoplastic and SAMRYOONG CoLtd, you can compare the effects of market volatilities on Ecoplastic and SAMRYOONG CoLtd 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 Ecoplastic with a short position of SAMRYOONG CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecoplastic and SAMRYOONG CoLtd.
Diversification Opportunities for Ecoplastic and SAMRYOONG CoLtd
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ecoplastic and SAMRYOONG is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ecoplastic and SAMRYOONG CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMRYOONG CoLtd and Ecoplastic 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 Ecoplastic are associated (or correlated) with SAMRYOONG CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMRYOONG CoLtd has no effect on the direction of Ecoplastic i.e., Ecoplastic and SAMRYOONG CoLtd go up and down completely randomly.
Pair Corralation between Ecoplastic and SAMRYOONG CoLtd
Assuming the 90 days trading horizon Ecoplastic is expected to under-perform the SAMRYOONG CoLtd. In addition to that, Ecoplastic is 1.48 times more volatile than SAMRYOONG CoLtd. It trades about -0.38 of its total potential returns per unit of risk. SAMRYOONG CoLtd is currently generating about -0.36 per unit of volatility. If you would invest 396,500 in SAMRYOONG CoLtd on September 1, 2024 and sell it today you would lose (41,000) from holding SAMRYOONG CoLtd or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ecoplastic vs. SAMRYOONG CoLtd
Performance |
| Timeline |
| Ecoplastic |
| SAMRYOONG CoLtd |
Ecoplastic and SAMRYOONG CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecoplastic and SAMRYOONG CoLtd
The main advantage of trading using opposite Ecoplastic and SAMRYOONG CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecoplastic position performs unexpectedly, SAMRYOONG CoLtd 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 SAMRYOONG CoLtd will offset losses from the drop in SAMRYOONG CoLtd's long position.| Ecoplastic vs. KT Submarine Telecom | Ecoplastic vs. Dong A Steel Technology | Ecoplastic vs. People Technology | Ecoplastic vs. KG Eco Technology |
| SAMRYOONG CoLtd vs. Union Materials Corp | SAMRYOONG CoLtd vs. INNOX Advanced Materials | SAMRYOONG CoLtd vs. Jeju Semiconductor Corp | SAMRYOONG CoLtd vs. Ecoplastic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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