Correlation Between SIMMTECH and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both SIMMTECH and Samsung Fire 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 SIMMTECH and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIMMTECH Co and Samsung Fire Marine, you can compare the effects of market volatilities on SIMMTECH and Samsung Fire 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 SIMMTECH with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIMMTECH and Samsung Fire.
Diversification Opportunities for SIMMTECH and Samsung Fire
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIMMTECH and Samsung is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SIMMTECH Co and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and SIMMTECH 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 SIMMTECH Co are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of SIMMTECH i.e., SIMMTECH and Samsung Fire go up and down completely randomly.
Pair Corralation between SIMMTECH and Samsung Fire
Assuming the 90 days trading horizon SIMMTECH Co is expected to under-perform the Samsung Fire. In addition to that, SIMMTECH is 1.22 times more volatile than Samsung Fire Marine. It trades about -0.05 of its total potential returns per unit of risk. Samsung Fire Marine is currently generating about 0.06 per unit of volatility. If you would invest 19,660,800 in Samsung Fire Marine on November 8, 2024 and sell it today you would earn a total of 16,489,200 from holding Samsung Fire Marine or generate 83.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
SIMMTECH Co vs. Samsung Fire Marine
Performance |
| Timeline |
| SIMMTECH |
| Samsung Fire Marine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
SIMMTECH and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIMMTECH and Samsung Fire
The main advantage of trading using opposite SIMMTECH and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMMTECH position performs unexpectedly, Samsung Fire 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 Fire will offset losses from the drop in Samsung Fire's long position.| SIMMTECH vs. Samick Musical Instruments | SIMMTECH vs. Orbitech Co | SIMMTECH vs. Nasmedia Co | SIMMTECH vs. INFINITT Healthcare Co |
| Samsung Fire vs. DB Insurance Co | Samsung Fire vs. Korean Drug Co | Samsung Fire vs. Kisan Telecom Co | Samsung Fire vs. Samsung Life Insurance |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |