Correlation Between Koryo Credit and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Samsung 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 Koryo Credit and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Samsung Electronics Co, you can compare the effects of market volatilities on Koryo Credit and Samsung 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 Koryo Credit with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Samsung Electronics.
Diversification Opportunities for Koryo Credit and Samsung Electronics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koryo and Samsung is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Koryo Credit i.e., Koryo Credit and Samsung Electronics go up and down completely randomly.
Pair Corralation between Koryo Credit and Samsung Electronics
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.84 times more return on investment than Samsung Electronics. However, Koryo Credit Information is 1.2 times less risky than Samsung Electronics. It trades about 0.0 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 1,032,349 in Koryo Credit Information on August 29, 2024 and sell it today you would lose (30,349) from holding Koryo Credit Information or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Samsung Electronics Co
Performance |
| Timeline |
| Koryo Credit Information |
| Samsung Electronics |
Koryo Credit and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Samsung Electronics
The main advantage of trading using opposite Koryo Credit and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Samsung 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Koryo Credit vs. Eagle Veterinary Technology | Koryo Credit vs. Daou Technology | Koryo Credit vs. NewFlex Technology Co | Koryo Credit vs. Puloon Technology |
| Samsung Electronics vs. JYP Entertainment | Samsung Electronics vs. Samsung Heavy Industries | Samsung Electronics vs. Hanjinkal |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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