Correlation Between Samsung KODEX and Samsung KODEX
Can any of the company-specific risk be diversified away by investing in both Samsung KODEX and Samsung KODEX 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 Samsung KODEX and Samsung KODEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung KODEX Copper and Samsung KODEX Machinary, you can compare the effects of market volatilities on Samsung KODEX and Samsung KODEX 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 Samsung KODEX with a short position of Samsung KODEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung KODEX and Samsung KODEX.
Diversification Opportunities for Samsung KODEX and Samsung KODEX
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Samsung is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung KODEX Copper and Samsung KODEX Machinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung KODEX Machinary and Samsung KODEX 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 Samsung KODEX Copper are associated (or correlated) with Samsung KODEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung KODEX Machinary has no effect on the direction of Samsung KODEX i.e., Samsung KODEX and Samsung KODEX go up and down completely randomly.
Pair Corralation between Samsung KODEX and Samsung KODEX
Assuming the 90 days trading horizon Samsung KODEX Copper is expected to under-perform the Samsung KODEX. But the etf apears to be less risky and, when comparing its historical volatility, Samsung KODEX Copper is 1.55 times less risky than Samsung KODEX. The etf trades about -0.3 of its potential returns per unit of risk. The Samsung KODEX Machinary is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 723,000 in Samsung KODEX Machinary on September 4, 2024 and sell it today you would lose (34,500) from holding Samsung KODEX Machinary or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung KODEX Copper vs. Samsung KODEX Machinary
Performance |
| Timeline |
| Samsung KODEX Copper |
| Samsung KODEX Machinary |
Samsung KODEX and Samsung KODEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung KODEX and Samsung KODEX
The main advantage of trading using opposite Samsung KODEX and Samsung KODEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung KODEX position performs unexpectedly, Samsung KODEX 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 KODEX will offset losses from the drop in Samsung KODEX's long position.| Samsung KODEX vs. Samsung KODEX IT | Samsung KODEX vs. Samsung KODEX Machinary | Samsung KODEX vs. Samsung KODEX Samsung | Samsung KODEX vs. Samsung Asset Management |
| Samsung KODEX vs. Samsung KODEX IT | Samsung KODEX vs. Samsung KODEX Samsung | Samsung KODEX vs. Samsung Asset Management | Samsung KODEX vs. Samsung KODEX Copper |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |