Correlation Between Samjin LND and Clean Science
Can any of the company-specific risk be diversified away by investing in both Samjin LND and Clean Science 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 Samjin LND and Clean Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samjin LND Co and Clean Science co, you can compare the effects of market volatilities on Samjin LND and Clean Science 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 Samjin LND with a short position of Clean Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samjin LND and Clean Science.
Diversification Opportunities for Samjin LND and Clean Science
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Samjin and Clean is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Samjin LND Co and Clean Science co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Science co and Samjin LND 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 Samjin LND Co are associated (or correlated) with Clean Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Science co has no effect on the direction of Samjin LND i.e., Samjin LND and Clean Science go up and down completely randomly.
Pair Corralation between Samjin LND and Clean Science
Assuming the 90 days trading horizon Samjin LND Co is expected to under-perform the Clean Science. In addition to that, Samjin LND is 1.75 times more volatile than Clean Science co. It trades about -0.17 of its total potential returns per unit of risk. Clean Science co is currently generating about -0.28 per unit of volatility. If you would invest 491,000 in Clean Science co on September 13, 2024 and sell it today you would lose (68,500) from holding Clean Science co or give up 13.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samjin LND Co vs. Clean Science co
Performance |
| Timeline |
| Samjin LND |
| Clean Science co |
Samjin LND and Clean Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samjin LND and Clean Science
The main advantage of trading using opposite Samjin LND and Clean Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samjin LND position performs unexpectedly, Clean Science 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 Clean Science will offset losses from the drop in Clean Science's long position.| Samjin LND vs. Korean Air Lines | Samjin LND vs. Dongbu Insurance Co | Samjin LND vs. Incar Financial Service | Samjin LND vs. Lotte Non Life Insurance |
| Clean Science vs. Mirai Semiconductors Co | Clean Science vs. BGF Retail Co | Clean Science vs. Echomarketing CoLtd | Clean Science vs. iNtRON Biotechnology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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