Correlation Between Incar Financial and Samlip General
Can any of the company-specific risk be diversified away by investing in both Incar Financial and Samlip General 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 Incar Financial and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Samlip General Foods, you can compare the effects of market volatilities on Incar Financial and Samlip General 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 Incar Financial with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Samlip General.
Diversification Opportunities for Incar Financial and Samlip General
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Incar and Samlip is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Incar Financial 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 Incar Financial Service are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Incar Financial i.e., Incar Financial and Samlip General go up and down completely randomly.
Pair Corralation between Incar Financial and Samlip General
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 4.3 times more return on investment than Samlip General. However, Incar Financial is 4.3 times more volatile than Samlip General Foods. It trades about 0.01 of its potential returns per unit of risk. Samlip General Foods is currently generating about -0.07 per unit of risk. If you would invest 1,395,876 in Incar Financial Service on September 14, 2024 and sell it today you would lose (780,876) from holding Incar Financial Service or give up 55.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.55% |
| Values | Daily Returns |
Incar Financial Service vs. Samlip General Foods
Performance |
| Timeline |
| Incar Financial Service |
| Samlip General Foods |
Incar Financial and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and Samlip General
The main advantage of trading using opposite Incar Financial and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Incar Financial vs. Solution Advanced Technology | Incar Financial vs. Busan Industrial Co | Incar Financial vs. Busan Ind | Incar Financial vs. Sam Chun Dang |
| Samlip General vs. KakaoBank Corp | Samlip General vs. Atinum Investment Co | Samlip General vs. Lotte Non Life Insurance | Samlip General vs. Incar Financial Service |
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 CEOs Directory module to screen CEOs from public companies around the world.
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