Correlation Between Okins Electronics and Samhwa Paint
Can any of the company-specific risk be diversified away by investing in both Okins Electronics and Samhwa Paint 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 Okins Electronics and Samhwa Paint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Samhwa Paint Industrial, you can compare the effects of market volatilities on Okins Electronics and Samhwa Paint 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 Okins Electronics with a short position of Samhwa Paint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Samhwa Paint.
Diversification Opportunities for Okins Electronics and Samhwa Paint
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okins and Samhwa is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Samhwa Paint Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhwa Paint Industrial and Okins Electronics 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 Okins Electronics Co are associated (or correlated) with Samhwa Paint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhwa Paint Industrial has no effect on the direction of Okins Electronics i.e., Okins Electronics and Samhwa Paint go up and down completely randomly.
Pair Corralation between Okins Electronics and Samhwa Paint
Assuming the 90 days trading horizon Okins Electronics Co is expected to generate 9.83 times more return on investment than Samhwa Paint. However, Okins Electronics is 9.83 times more volatile than Samhwa Paint Industrial. It trades about 0.16 of its potential returns per unit of risk. Samhwa Paint Industrial is currently generating about 0.09 per unit of risk. If you would invest 515,000 in Okins Electronics Co on November 18, 2024 and sell it today you would earn a total of 114,000 from holding Okins Electronics Co or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okins Electronics Co vs. Samhwa Paint Industrial
Performance |
| Timeline |
| Okins Electronics |
| Samhwa Paint Industrial |
Okins Electronics and Samhwa Paint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okins Electronics and Samhwa Paint
The main advantage of trading using opposite Okins Electronics and Samhwa Paint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics position performs unexpectedly, Samhwa Paint 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 Samhwa Paint will offset losses from the drop in Samhwa Paint's long position.| Okins Electronics vs. Haitai Confectionery Foods | Okins Electronics vs. Nice Information Telecommunication | Okins Electronics vs. Nable Communications | Okins Electronics vs. Samlip General Foods |
| Samhwa Paint vs. SV Investment | Samhwa Paint vs. Lotte Fine Chemical | Samhwa Paint vs. Stic Investments | Samhwa Paint vs. Silicon2 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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