Correlation Between Clean Science and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Clean Science and Samyung Trading 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 Clean Science and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Science co and Samyung Trading Co, you can compare the effects of market volatilities on Clean Science and Samyung Trading 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 Clean Science with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Science and Samyung Trading.
Diversification Opportunities for Clean Science and Samyung Trading
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Clean and Samyung is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Clean Science co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Clean Science 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 Clean Science co are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Clean Science i.e., Clean Science and Samyung Trading go up and down completely randomly.
Pair Corralation between Clean Science and Samyung Trading
Assuming the 90 days trading horizon Clean Science co is expected to generate 5.39 times more return on investment than Samyung Trading. However, Clean Science is 5.39 times more volatile than Samyung Trading Co. It trades about 0.27 of its potential returns per unit of risk. Samyung Trading Co is currently generating about -0.22 per unit of risk. If you would invest 450,000 in Clean Science co on November 1, 2024 and sell it today you would earn a total of 65,000 from holding Clean Science co or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Science co vs. Samyung Trading Co
Performance |
| Timeline |
| Clean Science co |
| Samyung Trading |
Clean Science and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Science and Samyung Trading
The main advantage of trading using opposite Clean Science and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Science position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Clean Science vs. Korean Drug Co | Clean Science vs. Lotte Data Communication | Clean Science vs. Dongbang Transport Logistics | Clean Science vs. Hanmi Semiconductor Co |
| Samyung Trading vs. Miwon Chemicals Co | Samyung Trading vs. Sung Bo Chemicals | Samyung Trading vs. Sewoon Medical Co | Samyung Trading vs. Clean Science 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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