Correlation Between Korea Computer and Samhyun Steel
Can any of the company-specific risk be diversified away by investing in both Korea Computer 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 Korea Computer and Samhyun Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Computer and Samhyun Steel Co, you can compare the effects of market volatilities on Korea Computer 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 Korea Computer with a short position of Samhyun Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Computer and Samhyun Steel.
Diversification Opportunities for Korea Computer and Samhyun Steel
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Korea and Samhyun is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Korea Computer and Samhyun Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun Steel and Korea Computer 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 Korea Computer 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 Korea Computer i.e., Korea Computer and Samhyun Steel go up and down completely randomly.
Pair Corralation between Korea Computer and Samhyun Steel
Assuming the 90 days trading horizon Korea Computer is expected to generate 2.32 times more return on investment than Samhyun Steel. However, Korea Computer is 2.32 times more volatile than Samhyun Steel Co. It trades about 0.03 of its potential returns per unit of risk. Samhyun Steel Co is currently generating about 0.0 per unit of risk. If you would invest 499,557 in Korea Computer on October 31, 2024 and sell it today you would earn a total of 16,443 from holding Korea Computer or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Computer vs. Samhyun Steel Co
Performance |
| Timeline |
| Korea Computer |
| Samhyun Steel |
Korea Computer and Samhyun Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Computer and Samhyun Steel
The main advantage of trading using opposite Korea Computer and Samhyun Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Computer 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.| Korea Computer vs. CKH Food Health | Korea Computer vs. DB Financial Investment | Korea Computer vs. Handok Clean Tech | Korea Computer vs. Haitai Confectionery Foods |
| Samhyun Steel vs. Kolon Plastics | Samhyun Steel vs. Sempio Foods Co | Samhyun Steel vs. DONGKUK TED METAL | Samhyun Steel vs. Hyosung Advanced Materials |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |