Correlation Between Sempio Foods and Samhyun Steel
Can any of the company-specific risk be diversified away by investing in both Sempio Foods and Samhyun Steel 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 Sempio Foods and Samhyun Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sempio Foods Co and Samhyun Steel Co, you can compare the effects of market volatilities on Sempio Foods and Samhyun Steel 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 Sempio Foods with a short position of Samhyun Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sempio Foods and Samhyun Steel.
Diversification Opportunities for Sempio Foods and Samhyun Steel
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sempio and Samhyun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sempio Foods Co and Samhyun Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun Steel and Sempio Foods 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 Sempio Foods Co are associated (or correlated) with Samhyun Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun Steel has no effect on the direction of Sempio Foods i.e., Sempio Foods and Samhyun Steel go up and down completely randomly.
Pair Corralation between Sempio Foods and Samhyun Steel
Assuming the 90 days trading horizon Sempio Foods Co is expected to generate 1.47 times more return on investment than Samhyun Steel. However, Sempio Foods is 1.47 times more volatile than Samhyun Steel Co. It trades about 0.05 of its potential returns per unit of risk. Samhyun Steel Co is currently generating about 0.06 per unit of risk. If you would invest 2,520,000 in Sempio Foods Co on October 13, 2024 and sell it today you would earn a total of 35,000 from holding Sempio Foods Co or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sempio Foods Co vs. Samhyun Steel Co
Performance |
| Timeline |
| Sempio Foods |
| Samhyun Steel |
Sempio Foods and Samhyun Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sempio Foods and Samhyun Steel
The main advantage of trading using opposite Sempio Foods and Samhyun Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sempio Foods position performs unexpectedly, Samhyun Steel 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 Samhyun Steel will offset losses from the drop in Samhyun Steel's long position.| Sempio Foods vs. Cube Entertainment | Sempio Foods vs. TS Investment Corp | Sempio Foods vs. Alton Sports CoLtd | Sempio Foods vs. Pan Entertainment Co |
| Samhyun Steel vs. DB Insurance Co | Samhyun Steel vs. Daewon Media Co | Samhyun Steel vs. SAMG Entertainment Co | Samhyun Steel vs. Miwon Chemicals 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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