Correlation Between CHOROKBAEM PANY and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both CHOROKBAEM PANY and Samsung SDI 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 CHOROKBAEM PANY and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHOROKBAEM PANY Co and Samsung SDI, you can compare the effects of market volatilities on CHOROKBAEM PANY and Samsung SDI 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 CHOROKBAEM PANY with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHOROKBAEM PANY and Samsung SDI.
Diversification Opportunities for CHOROKBAEM PANY and Samsung SDI
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CHOROKBAEM and Samsung is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CHOROKBAEM PANY Co and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and CHOROKBAEM PANY 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 CHOROKBAEM PANY Co are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of CHOROKBAEM PANY i.e., CHOROKBAEM PANY and Samsung SDI go up and down completely randomly.
Pair Corralation between CHOROKBAEM PANY and Samsung SDI
Assuming the 90 days trading horizon CHOROKBAEM PANY Co is expected to generate 1.35 times more return on investment than Samsung SDI. However, CHOROKBAEM PANY is 1.35 times more volatile than Samsung SDI. It trades about 0.05 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.18 per unit of risk. If you would invest 29,800 in CHOROKBAEM PANY Co on October 20, 2024 and sell it today you would earn a total of 200.00 from holding CHOROKBAEM PANY Co or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 35.0% |
| Values | Daily Returns |
CHOROKBAEM PANY Co vs. Samsung SDI
Performance |
| Timeline |
| CHOROKBAEM PANY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Samsung SDI |
CHOROKBAEM PANY and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHOROKBAEM PANY and Samsung SDI
The main advantage of trading using opposite CHOROKBAEM PANY and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHOROKBAEM PANY position performs unexpectedly, Samsung SDI 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 SDI will offset losses from the drop in Samsung SDI's long position.| CHOROKBAEM PANY vs. Samsung Electronics Co | CHOROKBAEM PANY vs. Samsung Electronics Co | CHOROKBAEM PANY vs. LG Energy Solution | CHOROKBAEM PANY vs. SK Hynix |
| Samsung SDI vs. Korea New Network | Samsung SDI vs. Dong A Eltek | Samsung SDI vs. Dreamus Company | Samsung SDI vs. SK Bioscience 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |