Correlation Between A-Tech Solution and Samsung Special
Can any of the company-specific risk be diversified away by investing in both A-Tech Solution and Samsung Special 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 A-Tech Solution and Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Tech Solution Co and Samsung Special Purpose, you can compare the effects of market volatilities on A-Tech Solution and Samsung Special 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 A-Tech Solution with a short position of Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of A-Tech Solution and Samsung Special.
Diversification Opportunities for A-Tech Solution and Samsung Special
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between A-Tech and Samsung is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding A Tech Solution Co and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose and A-Tech Solution 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 A Tech Solution Co are associated (or correlated) with Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of A-Tech Solution i.e., A-Tech Solution and Samsung Special go up and down completely randomly.
Pair Corralation between A-Tech Solution and Samsung Special
Assuming the 90 days trading horizon A Tech Solution Co is expected to under-perform the Samsung Special. But the stock apears to be less risky and, when comparing its historical volatility, A Tech Solution Co is 1.8 times less risky than Samsung Special. The stock trades about -0.11 of its potential returns per unit of risk. The Samsung Special Purpose is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 335,000 in Samsung Special Purpose on September 14, 2024 and sell it today you would lose (126,500) from holding Samsung Special Purpose or give up 37.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A Tech Solution Co vs. Samsung Special Purpose
Performance |
| Timeline |
| A Tech Solution |
| Samsung Special Purpose |
A-Tech Solution and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A-Tech Solution and Samsung Special
The main advantage of trading using opposite A-Tech Solution and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A-Tech Solution position performs unexpectedly, Samsung Special 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 Special will offset losses from the drop in Samsung Special's long position.| A-Tech Solution vs. Korea New Network | A-Tech Solution vs. Solution Advanced Technology | A-Tech Solution vs. Busan Industrial Co | A-Tech Solution vs. Busan Ind |
| Samsung Special vs. CU Tech Corp | Samsung Special vs. Tamul Multimedia Co | Samsung Special vs. Lion Chemtech Co | Samsung Special vs. ABOV Semiconductor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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