Correlation Between Samsung Biologics and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both Samsung Biologics and Wonbang Tech 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 Wonbang Tech 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 Wonbang Tech Co, you can compare the effects of market volatilities on Samsung Biologics and Wonbang Tech 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 Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Biologics and Wonbang Tech.
Diversification Opportunities for Samsung Biologics and Wonbang Tech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Wonbang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Biologics Co and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech 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 Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of Samsung Biologics i.e., Samsung Biologics and Wonbang Tech go up and down completely randomly.
Pair Corralation between Samsung Biologics and Wonbang Tech
Assuming the 90 days trading horizon Samsung Biologics Co is expected to generate 0.15 times more return on investment than Wonbang Tech. However, Samsung Biologics Co is 6.53 times less risky than Wonbang Tech. It trades about 0.23 of its potential returns per unit of risk. Wonbang Tech Co is currently generating about -0.09 per unit of risk. If you would invest 98,300,000 in Samsung Biologics Co on November 8, 2024 and sell it today you would earn a total of 1,700,000 from holding Samsung Biologics Co or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Biologics Co vs. Wonbang Tech Co
Performance |
| Timeline |
| Samsung Biologics |
| Wonbang Tech |
Samsung Biologics and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Biologics and Wonbang Tech
The main advantage of trading using opposite Samsung Biologics and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Biologics position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech's long position.| Samsung Biologics vs. SEOWONINTECHCoLtd | Samsung Biologics vs. Mgame Corp | Samsung Biologics vs. CU Medical Systems | Samsung Biologics vs. SS TECH |
| Wonbang Tech vs. Histeel | Wonbang Tech vs. Kumho Petro Chemical | Wonbang Tech vs. Hanwha Chemical Corp | Wonbang Tech vs. Daehan Steel |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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