Correlation Between Duksan Hi and Sam-A Pharm
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Sam-A Pharm 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 Sam-A Pharm 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 Sam A Pharm Co, you can compare the effects of market volatilities on Duksan Hi and Sam-A Pharm 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 Sam-A Pharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Sam-A Pharm.
Diversification Opportunities for Duksan Hi and Sam-A Pharm
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duksan and Sam-A is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm 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 Sam-A Pharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Duksan Hi i.e., Duksan Hi and Sam-A Pharm go up and down completely randomly.
Pair Corralation between Duksan Hi and Sam-A Pharm
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Sam-A Pharm. In addition to that, Duksan Hi is 1.63 times more volatile than Sam A Pharm Co. It trades about -0.31 of its total potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.38 per unit of volatility. If you would invest 2,025,000 in Sam A Pharm Co on September 12, 2024 and sell it today you would lose (365,000) from holding Sam A Pharm Co or give up 18.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Sam A Pharm Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Sam A Pharm |
Duksan Hi and Sam-A Pharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Sam-A Pharm
The main advantage of trading using opposite Duksan Hi and Sam-A Pharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Sam-A Pharm 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 Sam-A Pharm will offset losses from the drop in Sam-A Pharm's long position.| Duksan Hi vs. Cube Entertainment | Duksan Hi vs. Dreamus Company | Duksan Hi vs. LG Energy Solution | Duksan Hi vs. Dongwon System |
| Sam-A Pharm vs. Kolon Life Science | Sam-A Pharm vs. JETEMA Co | Sam-A Pharm vs. Aminologics CoLtd | Sam-A Pharm vs. Daihan Pharmaceutical 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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