Correlation Between GemVaxKAEL CoLtd and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and Samsung SDI 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 GemVaxKAEL CoLtd and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and Samsung SDI, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and Samsung SDI 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 GemVaxKAEL CoLtd with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and Samsung SDI.
Diversification Opportunities for GemVaxKAEL CoLtd and Samsung SDI
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GemVaxKAEL and Samsung is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and Samsung SDI go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and Samsung SDI
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 1.43 times more return on investment than Samsung SDI. However, GemVaxKAEL CoLtd is 1.43 times more volatile than Samsung SDI. It trades about 0.24 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.15 per unit of risk. If you would invest 1,482,000 in GemVaxKAEL CoLtd on October 13, 2024 and sell it today you would earn a total of 259,000 from holding GemVaxKAEL CoLtd or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. Samsung SDI
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| Samsung SDI |
GemVaxKAEL CoLtd and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and Samsung SDI
The main advantage of trading using opposite GemVaxKAEL CoLtd and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, Samsung SDI 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 Samsung SDI will offset losses from the drop in Samsung SDI's long position.| GemVaxKAEL CoLtd vs. Samlip General Foods | GemVaxKAEL CoLtd vs. Korean Drug Co | GemVaxKAEL CoLtd vs. Daechang Steel Co | GemVaxKAEL CoLtd vs. Hyundai Home Shopping |
| Samsung SDI vs. KMH Hitech Co | Samsung SDI vs. GemVaxKAEL CoLtd | Samsung SDI vs. Bosung Power Technology | Samsung SDI vs. Busan Industrial 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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