Correlation Between NewFlex Technology and Sam A
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology 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 NewFlex Technology and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Sam A Pharm Co, you can compare the effects of market volatilities on NewFlex Technology 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 NewFlex Technology with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Sam A.
Diversification Opportunities for NewFlex Technology and Sam A
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NewFlex and Sam is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co 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 NewFlex Technology 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 NewFlex Technology Co 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 NewFlex Technology i.e., NewFlex Technology and Sam A go up and down completely randomly.
Pair Corralation between NewFlex Technology and Sam A
Assuming the 90 days trading horizon NewFlex Technology Co is expected to under-perform the Sam A. But the stock apears to be less risky and, when comparing its historical volatility, NewFlex Technology Co is 1.15 times less risky than Sam A. The stock trades about -0.07 of its potential returns per unit of risk. The Sam A Pharm Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,964,000 in Sam A Pharm Co on September 3, 2024 and sell it today you would lose (233,000) from holding Sam A Pharm Co or give up 11.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. Sam A Pharm Co
Performance |
| Timeline |
| NewFlex Technology |
| Sam A Pharm |
NewFlex Technology and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Sam A
The main advantage of trading using opposite NewFlex Technology and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology 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.| NewFlex Technology vs. Dongsin Engineering Construction | NewFlex Technology vs. Doosan Fuel Cell | NewFlex Technology vs. Daishin Balance 1 | NewFlex Technology 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |