Correlation Between PNC Technologies and Samjin LND
Can any of the company-specific risk be diversified away by investing in both PNC Technologies and Samjin LND 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 PNC Technologies and Samjin LND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PNC Technologies co and Samjin LND Co, you can compare the effects of market volatilities on PNC Technologies and Samjin LND 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 PNC Technologies with a short position of Samjin LND. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Technologies and Samjin LND.
Diversification Opportunities for PNC Technologies and Samjin LND
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PNC and Samjin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding PNC Technologies co and Samjin LND Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samjin LND and PNC Technologies 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 PNC Technologies co are associated (or correlated) with Samjin LND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samjin LND has no effect on the direction of PNC Technologies i.e., PNC Technologies and Samjin LND go up and down completely randomly.
Pair Corralation between PNC Technologies and Samjin LND
Assuming the 90 days trading horizon PNC Technologies co is expected to generate 0.82 times more return on investment than Samjin LND. However, PNC Technologies co is 1.21 times less risky than Samjin LND. It trades about -0.11 of its potential returns per unit of risk. Samjin LND Co is currently generating about -0.21 per unit of risk. If you would invest 430,000 in PNC Technologies co on September 12, 2024 and sell it today you would lose (38,500) from holding PNC Technologies co or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Technologies co vs. Samjin LND Co
Performance |
| Timeline |
| PNC Technologies |
| Samjin LND |
PNC Technologies and Samjin LND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Technologies and Samjin LND
The main advantage of trading using opposite PNC Technologies and Samjin LND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Technologies position performs unexpectedly, Samjin LND 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 Samjin LND will offset losses from the drop in Samjin LND's long position.| PNC Technologies vs. Daejoo Electronic Materials | PNC Technologies vs. Interflex Co | PNC Technologies vs. Solution Advanced Technology | PNC Technologies vs. Busan Industrial Co |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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