Correlation Between ITM Semiconductor and Samsung Biologics
Can any of the company-specific risk be diversified away by investing in both ITM Semiconductor and Samsung Biologics 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 ITM Semiconductor and Samsung Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITM Semiconductor Co and Samsung Biologics Co, you can compare the effects of market volatilities on ITM Semiconductor and Samsung Biologics 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 ITM Semiconductor with a short position of Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITM Semiconductor and Samsung Biologics.
Diversification Opportunities for ITM Semiconductor and Samsung Biologics
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ITM and Samsung is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ITM Semiconductor Co and Samsung Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Biologics and ITM 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 ITM Semiconductor Co are associated (or correlated) with Samsung Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Biologics has no effect on the direction of ITM Semiconductor i.e., ITM Semiconductor and Samsung Biologics go up and down completely randomly.
Pair Corralation between ITM Semiconductor and Samsung Biologics
Assuming the 90 days trading horizon ITM Semiconductor Co is expected to under-perform the Samsung Biologics. In addition to that, ITM Semiconductor is 2.09 times more volatile than Samsung Biologics Co. It trades about 0.0 of its total potential returns per unit of risk. Samsung Biologics Co is currently generating about 0.27 per unit of volatility. If you would invest 94,900,000 in Samsung Biologics Co on October 29, 2024 and sell it today you would earn a total of 5,100,000 from holding Samsung Biologics Co or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITM Semiconductor Co vs. Samsung Biologics Co
Performance |
| Timeline |
| ITM Semiconductor |
| Samsung Biologics |
ITM Semiconductor and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITM Semiconductor and Samsung Biologics
The main advantage of trading using opposite ITM Semiconductor and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITM Semiconductor position performs unexpectedly, Samsung Biologics 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 Biologics will offset losses from the drop in Samsung Biologics' long position.| ITM Semiconductor vs. Seoyon Topmetal Co | ITM Semiconductor vs. Raontech | ITM Semiconductor vs. Solution Advanced Technology | ITM Semiconductor vs. PNC Technologies co |
| Samsung Biologics vs. Hironic Co | Samsung Biologics vs. Miwon Chemicals Co | Samsung Biologics vs. BooKook Steel Co | Samsung Biologics vs. Korea Steel 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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