Correlation Between Koryo Credit and Samhyun Steel
Can any of the company-specific risk be diversified away by investing in both Koryo Credit 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 Koryo Credit and Samhyun Steel 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 Samhyun Steel Co, you can compare the effects of market volatilities on Koryo Credit 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 Koryo Credit with a short position of Samhyun Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Samhyun Steel.
Diversification Opportunities for Koryo Credit and Samhyun Steel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koryo and Samhyun is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Samhyun Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun Steel 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 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 Koryo Credit i.e., Koryo Credit and Samhyun Steel go up and down completely randomly.
Pair Corralation between Koryo Credit and Samhyun Steel
Assuming the 90 days trading horizon Koryo Credit is expected to generate 3.13 times less return on investment than Samhyun Steel. But when comparing it to its historical volatility, Koryo Credit Information is 1.29 times less risky than Samhyun Steel. It trades about 0.02 of its potential returns per unit of risk. Samhyun Steel Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 440,275 in Samhyun Steel Co on October 13, 2024 and sell it today you would earn a total of 5,725 from holding Samhyun Steel Co or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Samhyun Steel Co
Performance |
| Timeline |
| Koryo Credit Information |
| Samhyun Steel |
Koryo Credit and Samhyun Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Samhyun Steel
The main advantage of trading using opposite Koryo Credit and Samhyun Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit 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.| Koryo Credit vs. Miwon Chemical | Koryo Credit vs. Youl Chon Chemical | Koryo Credit vs. KPX Green Chemical | Koryo Credit vs. Daou Data Corp |
| Samhyun Steel vs. DB Insurance Co | Samhyun Steel vs. Daewon Media Co | Samhyun Steel vs. SAMG Entertainment Co | Samhyun Steel vs. Miwon Chemicals 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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