Correlation Between Daesung Hi and Sam A
Can any of the company-specific risk be diversified away by investing in both Daesung Hi 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 Daesung Hi and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Hi Tech Co and Sam A Pharm Co, you can compare the effects of market volatilities on Daesung Hi 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 Daesung Hi with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and Sam A.
Diversification Opportunities for Daesung Hi and Sam A
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Daesung and Sam is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech 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 Daesung Hi 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 Daesung Hi Tech 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 Daesung Hi i.e., Daesung Hi and Sam A go up and down completely randomly.
Pair Corralation between Daesung Hi and Sam A
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to under-perform the Sam A. In addition to that, Daesung Hi is 1.22 times more volatile than Sam A Pharm Co. It trades about -0.17 of its total potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.15 per unit of volatility. If you would invest 2,568,261 in Sam A Pharm Co on November 3, 2024 and sell it today you would lose (935,261) from holding Sam A Pharm Co or give up 36.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Hi Tech Co vs. Sam A Pharm Co
Performance |
| Timeline |
| Daesung Hi Tech |
| Sam A Pharm |
Daesung Hi and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and Sam A
The main advantage of trading using opposite Daesung Hi and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi 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.| Daesung Hi vs. Kukdong Oil Chemicals | Daesung Hi vs. Samlip General Foods | Daesung Hi vs. Dongwoo Farm To | Daesung Hi vs. Woorim Machinery Co |
| Sam A vs. Kolon Life Science | Sam A vs. JETEMA Co | Sam A vs. Aminologics CoLtd | Sam A vs. Daihan Pharmaceutical 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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