Correlation Between Duksan Hi and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Samji 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 Samji 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 Samji Electronics Co, you can compare the effects of market volatilities on Duksan Hi and Samji 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 Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Samji Electronics.
Diversification Opportunities for Duksan Hi and Samji Electronics
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duksan and Samji is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji 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 Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Duksan Hi i.e., Duksan Hi and Samji Electronics go up and down completely randomly.
Pair Corralation between Duksan Hi and Samji Electronics
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Samji Electronics. In addition to that, Duksan Hi is 3.53 times more volatile than Samji Electronics Co. It trades about -0.3 of its total potential returns per unit of risk. Samji Electronics Co is currently generating about -0.22 per unit of volatility. If you would invest 875,000 in Samji Electronics Co on September 1, 2024 and sell it today you would lose (37,000) from holding Samji Electronics Co or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Samji Electronics Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Samji Electronics |
Duksan Hi and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Samji Electronics
The main advantage of trading using opposite Duksan Hi and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Samji 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 Samji Electronics will offset losses from the drop in Samji Electronics' long position.| Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. PJ Metal Co | Duksan Hi vs. Dongbang Transport Logistics | Duksan Hi vs. Nasmedia Co |
| Samji Electronics vs. Dongsin Engineering Construction | Samji Electronics vs. Doosan Fuel Cell | Samji Electronics vs. Daishin Balance 1 | Samji Electronics vs. Total Soft Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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