Correlation Between Hanjinkal and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Hanjinkal and Samsung Electronics 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 Hanjinkal and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjinkal and Samsung Electronics Co, you can compare the effects of market volatilities on Hanjinkal and Samsung Electronics 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 Hanjinkal with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjinkal and Samsung Electronics.
Diversification Opportunities for Hanjinkal and Samsung Electronics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanjinkal and Samsung is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hanjinkal and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Hanjinkal 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 Hanjinkal are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Hanjinkal i.e., Hanjinkal and Samsung Electronics go up and down completely randomly.
Pair Corralation between Hanjinkal and Samsung Electronics
Assuming the 90 days trading horizon Hanjinkal is expected to generate 2.2 times more return on investment than Samsung Electronics. However, Hanjinkal is 2.2 times more volatile than Samsung Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 3,687,938 in Hanjinkal on August 29, 2024 and sell it today you would earn a total of 4,242,062 from holding Hanjinkal or generate 115.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjinkal vs. Samsung Electronics Co
Performance |
| Timeline |
| Hanjinkal |
| Samsung Electronics |
Hanjinkal and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjinkal and Samsung Electronics
The main advantage of trading using opposite Hanjinkal and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjinkal position performs unexpectedly, Samsung Electronics 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 Electronics will offset losses from the drop in Samsung Electronics' long position.| Hanjinkal vs. Korean Drug Co | Hanjinkal vs. Shinsegae Information Communication | Hanjinkal vs. CU Medical Systems | Hanjinkal vs. Inzi Display CoLtd |
| Samsung Electronics vs. Nice Information Telecommunication | Samsung Electronics vs. Mobile Appliance | Samsung Electronics vs. Korea Shipbuilding Offshore | Samsung Electronics vs. Daou Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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