Correlation Between Worldex Industry and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Worldex Industry and Samyung Trading 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 Worldex Industry and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worldex Industry Trading and Samyung Trading Co, you can compare the effects of market volatilities on Worldex Industry and Samyung Trading 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 Worldex Industry with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worldex Industry and Samyung Trading.
Diversification Opportunities for Worldex Industry and Samyung Trading
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Worldex and Samyung is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Worldex Industry Trading and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Worldex Industry 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 Worldex Industry Trading are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Worldex Industry i.e., Worldex Industry and Samyung Trading go up and down completely randomly.
Pair Corralation between Worldex Industry and Samyung Trading
Assuming the 90 days trading horizon Worldex Industry Trading is expected to under-perform the Samyung Trading. In addition to that, Worldex Industry is 4.13 times more volatile than Samyung Trading Co. It trades about -0.15 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about -0.11 per unit of volatility. If you would invest 1,263,000 in Samyung Trading Co on November 5, 2024 and sell it today you would lose (13,000) from holding Samyung Trading Co or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worldex Industry Trading vs. Samyung Trading Co
Performance |
| Timeline |
| Worldex Industry Trading |
| Samyung Trading |
Worldex Industry and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worldex Industry and Samyung Trading
The main advantage of trading using opposite Worldex Industry and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worldex Industry position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Worldex Industry vs. Samsung Electronics Co | Worldex Industry vs. Samsung Electronics Co | Worldex Industry vs. Hyundai Motor Co | Worldex Industry vs. Hyundai Motor |
| Samyung Trading vs. Haitai Confectionery Foods | Samyung Trading vs. Kukil Metal Co | Samyung Trading vs. Seoul Food Industrial | Samyung Trading vs. Organic Special Pet |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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