Correlation Between Orbitech and Samhyun Steel
Can any of the company-specific risk be diversified away by investing in both Orbitech and Samhyun Steel 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 Orbitech and Samhyun Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and Samhyun Steel Co, you can compare the effects of market volatilities on Orbitech and Samhyun Steel 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 Orbitech with a short position of Samhyun Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and Samhyun Steel.
Diversification Opportunities for Orbitech and Samhyun Steel
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orbitech and Samhyun is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and Samhyun Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun Steel and Orbitech 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 Orbitech Co are associated (or correlated) with Samhyun Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun Steel has no effect on the direction of Orbitech i.e., Orbitech and Samhyun Steel go up and down completely randomly.
Pair Corralation between Orbitech and Samhyun Steel
Assuming the 90 days trading horizon Orbitech is expected to generate 1.37 times less return on investment than Samhyun Steel. In addition to that, Orbitech is 1.48 times more volatile than Samhyun Steel Co. It trades about 0.09 of its total potential returns per unit of risk. Samhyun Steel Co is currently generating about 0.19 per unit of volatility. If you would invest 431,853 in Samhyun Steel Co on October 12, 2024 and sell it today you would earn a total of 20,147 from holding Samhyun Steel Co or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbitech Co vs. Samhyun Steel Co
Performance |
| Timeline |
| Orbitech |
| Samhyun Steel |
Orbitech and Samhyun Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and Samhyun Steel
The main advantage of trading using opposite Orbitech and Samhyun Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, Samhyun Steel 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 Samhyun Steel will offset losses from the drop in Samhyun Steel's long position.| Orbitech vs. INNOX Advanced Materials | Orbitech vs. Mgame Corp | Orbitech vs. EBEST Investment Securities | Orbitech vs. Nh Investment And |
| Samhyun Steel vs. Orbitech Co | Samhyun Steel vs. Ssangyong Information Communication | Samhyun Steel vs. Innowireless Co | Samhyun Steel vs. Raontech |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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