Correlation Between ISU Abxis and Samsung Biologics
Can any of the company-specific risk be diversified away by investing in both ISU Abxis 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 ISU Abxis and Samsung Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ISU Abxis Co and Samsung Biologics Co, you can compare the effects of market volatilities on ISU Abxis 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 ISU Abxis with a short position of Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISU Abxis and Samsung Biologics.
Diversification Opportunities for ISU Abxis and Samsung Biologics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ISU and Samsung is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ISU Abxis 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 ISU Abxis 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 ISU Abxis 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 ISU Abxis i.e., ISU Abxis and Samsung Biologics go up and down completely randomly.
Pair Corralation between ISU Abxis and Samsung Biologics
Assuming the 90 days trading horizon ISU Abxis Co is expected to under-perform the Samsung Biologics. In addition to that, ISU Abxis is 1.47 times more volatile than Samsung Biologics Co. It trades about -0.08 of its total potential returns per unit of risk. Samsung Biologics Co is currently generating about 0.14 per unit of volatility. If you would invest 73,200,000 in Samsung Biologics Co on August 28, 2024 and sell it today you would earn a total of 22,600,000 from holding Samsung Biologics Co or generate 30.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ISU Abxis Co vs. Samsung Biologics Co
Performance |
| Timeline |
| ISU Abxis |
| Samsung Biologics |
ISU Abxis and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISU Abxis and Samsung Biologics
The main advantage of trading using opposite ISU Abxis and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISU Abxis 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.| ISU Abxis vs. Lotte Chilsung Beverage | ISU Abxis vs. Hankukpackage Co | ISU Abxis vs. Sangsangin Investment Securities | ISU Abxis vs. EBEST Investment Securities |
| Samsung Biologics vs. Hanjin Transportation Co | Samsung Biologics vs. Daekyung Machinery Engineering | Samsung Biologics vs. Hana Technology Co | Samsung Biologics vs. Alton Sports CoLtd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |