Correlation Between Korea New and Samsung Card
Can any of the company-specific risk be diversified away by investing in both Korea New and Samsung Card 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 New and Samsung Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Samsung Card Co, you can compare the effects of market volatilities on Korea New and Samsung Card 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 New with a short position of Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Samsung Card.
Diversification Opportunities for Korea New and Samsung Card
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Samsung is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card and Korea New 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 New Network are associated (or correlated) with Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of Korea New i.e., Korea New and Samsung Card go up and down completely randomly.
Pair Corralation between Korea New and Samsung Card
Assuming the 90 days trading horizon Korea New Network is expected to under-perform the Samsung Card. In addition to that, Korea New is 1.55 times more volatile than Samsung Card Co. It trades about -0.04 of its total potential returns per unit of risk. Samsung Card Co is currently generating about 0.19 per unit of volatility. If you would invest 3,940,000 in Samsung Card Co on August 29, 2024 and sell it today you would earn a total of 215,000 from holding Samsung Card Co or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea New Network vs. Samsung Card Co
Performance |
| Timeline |
| Korea New Network |
| Samsung Card |
Korea New and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and Samsung Card
The main advantage of trading using opposite Korea New and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New position performs unexpectedly, Samsung Card 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 Card will offset losses from the drop in Samsung Card's long position.| Korea New vs. Lotte Data Communication | Korea New vs. Samlip General Foods | Korea New vs. Hyundai Green Food | Korea New vs. CJ Seafood Corp |
| Samsung Card vs. Korea New Network | Samsung Card vs. Dong A Eltek | Samsung Card vs. Dreamus Company | Samsung Card 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |