Correlation Between SAMYOUNG M and COWINTECH
Can any of the company-specific risk be diversified away by investing in both SAMYOUNG M and COWINTECH 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 SAMYOUNG M and COWINTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMYOUNG M Tek Co and COWINTECH Co, you can compare the effects of market volatilities on SAMYOUNG M and COWINTECH 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 SAMYOUNG M with a short position of COWINTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMYOUNG M and COWINTECH.
Diversification Opportunities for SAMYOUNG M and COWINTECH
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAMYOUNG and COWINTECH is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SAMYOUNG M Tek Co and COWINTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COWINTECH and SAMYOUNG M 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 SAMYOUNG M Tek Co are associated (or correlated) with COWINTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COWINTECH has no effect on the direction of SAMYOUNG M i.e., SAMYOUNG M and COWINTECH go up and down completely randomly.
Pair Corralation between SAMYOUNG M and COWINTECH
Assuming the 90 days trading horizon SAMYOUNG M Tek Co is expected to generate 0.69 times more return on investment than COWINTECH. However, SAMYOUNG M Tek Co is 1.45 times less risky than COWINTECH. It trades about 0.01 of its potential returns per unit of risk. COWINTECH Co is currently generating about -0.08 per unit of risk. If you would invest 427,000 in SAMYOUNG M Tek Co on September 3, 2024 and sell it today you would earn a total of 1,500 from holding SAMYOUNG M Tek Co or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMYOUNG M Tek Co vs. COWINTECH Co
Performance |
| Timeline |
| SAMYOUNG M Tek |
| COWINTECH |
SAMYOUNG M and COWINTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMYOUNG M and COWINTECH
The main advantage of trading using opposite SAMYOUNG M and COWINTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMYOUNG M position performs unexpectedly, COWINTECH 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 COWINTECH will offset losses from the drop in COWINTECH's long position.| SAMYOUNG M vs. LG Display | SAMYOUNG M vs. Hyundai Motor | SAMYOUNG M vs. Hyundai Motor Co | SAMYOUNG M vs. Hyundai Motor Co |
| COWINTECH vs. Korea Refract | COWINTECH vs. Korea Refractories Co | COWINTECH vs. Shinhan Inverse WTI | COWINTECH vs. SAMYOUNG M Tek 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 Positions Ratings module to 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.
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