Correlation Between Jeju Semiconductor and Sam A
Can any of the company-specific risk be diversified away by investing in both Jeju Semiconductor and Sam A 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 Jeju Semiconductor and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Semiconductor Corp and Sam A Pharm Co, you can compare the effects of market volatilities on Jeju Semiconductor and Sam A 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 Jeju Semiconductor with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Semiconductor and Sam A.
Diversification Opportunities for Jeju Semiconductor and Sam A
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jeju and Sam is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Semiconductor Corp 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 Jeju Semiconductor 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 Jeju Semiconductor Corp are associated (or correlated) with Sam A. 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 Jeju Semiconductor i.e., Jeju Semiconductor and Sam A go up and down completely randomly.
Pair Corralation between Jeju Semiconductor and Sam A
Assuming the 90 days trading horizon Jeju Semiconductor is expected to generate 27.23 times less return on investment than Sam A. In addition to that, Jeju Semiconductor is 1.36 times more volatile than Sam A Pharm Co. It trades about 0.0 of its total potential returns per unit of risk. Sam A Pharm Co is currently generating about 0.02 per unit of volatility. If you would invest 1,639,567 in Sam A Pharm Co on September 3, 2024 and sell it today you would earn a total of 80,433 from holding Sam A Pharm Co or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Semiconductor Corp vs. Sam A Pharm Co
Performance |
| Timeline |
| Jeju Semiconductor Corp |
| Sam A Pharm |
Jeju Semiconductor and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Semiconductor and Sam A
The main advantage of trading using opposite Jeju Semiconductor and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Semiconductor position performs unexpectedly, Sam A 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 will offset losses from the drop in Sam A's long position.| Jeju Semiconductor vs. Dongsin Engineering Construction | Jeju Semiconductor vs. Doosan Fuel Cell | Jeju Semiconductor vs. Daishin Balance 1 | Jeju Semiconductor vs. Total Soft Bank |
| Sam A vs. NewFlex Technology Co | Sam A vs. Woori Technology | Sam A vs. AeroSpace Technology of | Sam A vs. Digital Power Communications |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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