Correlation Between Duksan Hi and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Samsung Electronics 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 Duksan Hi and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Samsung Electronics Co, you can compare the effects of market volatilities on Duksan Hi and Samsung Electronics 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 Duksan Hi with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Samsung Electronics.
Diversification Opportunities for Duksan Hi and Samsung Electronics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duksan and Samsung is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Duksan Hi 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 Duksan Hi Metal are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Duksan Hi i.e., Duksan Hi and Samsung Electronics go up and down completely randomly.
Pair Corralation between Duksan Hi and Samsung Electronics
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 1.36 times more return on investment than Samsung Electronics. However, Duksan Hi is 1.36 times more volatile than Samsung Electronics Co. It trades about 0.18 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.07 per unit of risk. If you would invest 379,000 in Duksan Hi Metal on October 28, 2024 and sell it today you would earn a total of 24,500 from holding Duksan Hi Metal or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Samsung Electronics Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Samsung Electronics |
Duksan Hi and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Samsung Electronics
The main advantage of trading using opposite Duksan Hi and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Samsung Electronics 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 Electronics will offset losses from the drop in Samsung Electronics' long position.| Duksan Hi vs. Samsung Electronics Co | Duksan Hi vs. Samsung Electronics Co | Duksan Hi vs. SK Hynix | Duksan Hi vs. HMM Co |
| Samsung Electronics vs. Nable Communications | Samsung Electronics vs. Hankukpackage Co | Samsung Electronics vs. Sejong Telecom | Samsung Electronics vs. Cloud Air CoLtd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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