Correlation Between Kiwoom and Samwha Electronics
Can any of the company-specific risk be diversified away by investing in both Kiwoom and Samwha Electronics 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 Kiwoom and Samwha Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiwoom and Samwha Electronics Co, you can compare the effects of market volatilities on Kiwoom and Samwha Electronics 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 Kiwoom with a short position of Samwha Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiwoom and Samwha Electronics.
Diversification Opportunities for Kiwoom and Samwha Electronics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kiwoom and Samwha is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kiwoom and Samwha Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samwha Electronics and Kiwoom 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 Kiwoom are associated (or correlated) with Samwha Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samwha Electronics has no effect on the direction of Kiwoom i.e., Kiwoom and Samwha Electronics go up and down completely randomly.
Pair Corralation between Kiwoom and Samwha Electronics
Assuming the 90 days trading horizon Kiwoom is expected to generate 0.54 times more return on investment than Samwha Electronics. However, Kiwoom is 1.84 times less risky than Samwha Electronics. It trades about 0.42 of its potential returns per unit of risk. Samwha Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 11,240,000 in Kiwoom on November 2, 2024 and sell it today you would earn a total of 1,210,000 from holding Kiwoom or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiwoom vs. Samwha Electronics Co
Performance |
| Timeline |
| Kiwoom |
| Samwha Electronics |
Kiwoom and Samwha Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiwoom and Samwha Electronics
The main advantage of trading using opposite Kiwoom and Samwha Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiwoom position performs unexpectedly, Samwha Electronics 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 Samwha Electronics will offset losses from the drop in Samwha Electronics' long position.| Kiwoom vs. Sung Bo Chemicals | Kiwoom vs. Choil Aluminum | Kiwoom vs. Youngbo Chemical Co | Kiwoom vs. Duksan Hi Metal |
| Samwha Electronics vs. DC Media Co | Samwha Electronics vs. Jeju Air Co | Samwha Electronics vs. Nasmedia Co | Samwha Electronics vs. Kaonmedia 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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