Correlation Between Samsung Biologics and Young Poong
Can any of the company-specific risk be diversified away by investing in both Samsung Biologics and Young Poong 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 Biologics and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Biologics Co and Young Poong Corp, you can compare the effects of market volatilities on Samsung Biologics and Young Poong 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 Biologics with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Biologics and Young Poong.
Diversification Opportunities for Samsung Biologics and Young Poong
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Young is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Biologics Co and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and Samsung Biologics 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 Biologics Co are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Corp has no effect on the direction of Samsung Biologics i.e., Samsung Biologics and Young Poong go up and down completely randomly.
Pair Corralation between Samsung Biologics and Young Poong
Assuming the 90 days trading horizon Samsung Biologics Co is expected to generate 1.09 times more return on investment than Young Poong. However, Samsung Biologics is 1.09 times more volatile than Young Poong Corp. It trades about 0.05 of its potential returns per unit of risk. Young Poong Corp is currently generating about 0.06 per unit of risk. If you would invest 98,600,000 in Samsung Biologics Co on October 14, 2024 and sell it today you would earn a total of 1,400,000 from holding Samsung Biologics Co or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Biologics Co vs. Young Poong Corp
Performance |
| Timeline |
| Samsung Biologics |
| Young Poong Corp |
Samsung Biologics and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Biologics and Young Poong
The main advantage of trading using opposite Samsung Biologics and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Biologics position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Samsung Biologics vs. Inzi Display CoLtd | Samsung Biologics vs. Sungmoon Electronics Co | Samsung Biologics vs. PJ Electronics Co | Samsung Biologics vs. Iljin Display |
| Young Poong vs. Nable Communications | Young Poong vs. Daejung Chemicals Metals | Young Poong vs. Korea Information Communications | Young Poong vs. Automobile Pc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |