Correlation Between Daewoo SBI and Samlip General
Can any of the company-specific risk be diversified away by investing in both Daewoo SBI 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 Daewoo SBI and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewoo SBI SPAC and Samlip General Foods, you can compare the effects of market volatilities on Daewoo SBI 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 Daewoo SBI with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewoo SBI and Samlip General.
Diversification Opportunities for Daewoo SBI and Samlip General
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Daewoo and Samlip is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Daewoo SBI SPAC 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 Daewoo SBI 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 Daewoo SBI SPAC 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 Daewoo SBI i.e., Daewoo SBI and Samlip General go up and down completely randomly.
Pair Corralation between Daewoo SBI and Samlip General
Assuming the 90 days trading horizon Daewoo SBI SPAC is expected to under-perform the Samlip General. But the stock apears to be less risky and, when comparing its historical volatility, Daewoo SBI SPAC is 1.0 times less risky than Samlip General. The stock trades about -0.28 of its potential returns per unit of risk. The Samlip General Foods is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 4,925,000 in Samlip General Foods on August 31, 2024 and sell it today you would lose (180,000) from holding Samlip General Foods or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewoo SBI SPAC vs. Samlip General Foods
Performance |
| Timeline |
| Daewoo SBI SPAC |
| Samlip General Foods |
Daewoo SBI and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewoo SBI and Samlip General
The main advantage of trading using opposite Daewoo SBI and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewoo SBI 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.| Daewoo SBI vs. Korea Information Communications | Daewoo SBI vs. Air Busan Co | Daewoo SBI vs. Shinsegae Information Communication | Daewoo SBI vs. Cloud Air CoLtd |
| Samlip General vs. AptaBio Therapeutics | Samlip General vs. Daewoo SBI SPAC | Samlip General vs. Dream Security co | Samlip General vs. Microfriend |
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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