Correlation Between PH Tech and Samil CoLtd
Can any of the company-specific risk be diversified away by investing in both PH Tech and Samil CoLtd 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 PH Tech and Samil CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Samil CoLtd, you can compare the effects of market volatilities on PH Tech and Samil CoLtd 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 PH Tech with a short position of Samil CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Samil CoLtd.
Diversification Opportunities for PH Tech and Samil CoLtd
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 239890 and Samil is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Samil CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samil CoLtd and PH Tech 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 PH Tech Co are associated (or correlated) with Samil CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samil CoLtd has no effect on the direction of PH Tech i.e., PH Tech and Samil CoLtd go up and down completely randomly.
Pair Corralation between PH Tech and Samil CoLtd
Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the Samil CoLtd. In addition to that, PH Tech is 2.15 times more volatile than Samil CoLtd. It trades about -0.02 of its total potential returns per unit of risk. Samil CoLtd is currently generating about -0.01 per unit of volatility. If you would invest 197,977 in Samil CoLtd on August 30, 2024 and sell it today you would lose (28,677) from holding Samil CoLtd or give up 14.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Samil CoLtd
Performance |
| Timeline |
| PH Tech |
| Samil CoLtd |
PH Tech and Samil CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Samil CoLtd
The main advantage of trading using opposite PH Tech and Samil CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, Samil CoLtd 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 Samil CoLtd will offset losses from the drop in Samil CoLtd's long position.| PH Tech vs. Taeyang Metal Industrial | PH Tech vs. National Plastic Co | PH Tech vs. Samick Musical Instruments | PH Tech vs. Kukil Metal Co |
| Samil CoLtd vs. Digital Multimedia Technology | Samil CoLtd vs. YG Entertainment | Samil CoLtd vs. Alton Sports CoLtd | Samil CoLtd vs. DC Media Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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