Correlation Between Okins Electronics and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Okins Electronics 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 Okins Electronics and Samji Electronics 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 Samji Electronics Co, you can compare the effects of market volatilities on Okins Electronics 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 Okins Electronics with a short position of Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Samji Electronics.
Diversification Opportunities for Okins Electronics and Samji Electronics
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Okins and Samji is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji Electronics 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 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 Okins Electronics i.e., Okins Electronics and Samji Electronics go up and down completely randomly.
Pair Corralation between Okins Electronics and Samji Electronics
Assuming the 90 days trading horizon Okins Electronics Co is expected to under-perform the Samji Electronics. In addition to that, Okins Electronics is 2.24 times more volatile than Samji Electronics Co. It trades about -0.67 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 |
Okins Electronics Co vs. Samji Electronics Co
Performance |
| Timeline |
| Okins Electronics |
| Samji Electronics |
Okins Electronics and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okins Electronics and Samji Electronics
The main advantage of trading using opposite Okins Electronics and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics 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.| Okins Electronics vs. Dongsin Engineering Construction | Okins Electronics vs. Doosan Fuel Cell | Okins Electronics vs. Daishin Balance 1 | Okins Electronics vs. Total Soft Bank |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |