Correlation Between YeSUN Tech and Samsung Special
Can any of the company-specific risk be diversified away by investing in both YeSUN Tech and Samsung Special 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 YeSUN Tech and Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YeSUN Tech CoLtd and Samsung Special Purpose, you can compare the effects of market volatilities on YeSUN Tech and Samsung Special 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 YeSUN Tech with a short position of Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of YeSUN Tech and Samsung Special.
Diversification Opportunities for YeSUN Tech and Samsung Special
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YeSUN and Samsung is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding YeSUN Tech CoLtd and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose and YeSUN 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 YeSUN Tech CoLtd are associated (or correlated) with Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of YeSUN Tech i.e., YeSUN Tech and Samsung Special go up and down completely randomly.
Pair Corralation between YeSUN Tech and Samsung Special
Assuming the 90 days trading horizon YeSUN Tech CoLtd is expected to under-perform the Samsung Special. In addition to that, YeSUN Tech is 8.43 times more volatile than Samsung Special Purpose. It trades about -0.19 of its total potential returns per unit of risk. Samsung Special Purpose is currently generating about -0.15 per unit of volatility. If you would invest 213,000 in Samsung Special Purpose on August 28, 2024 and sell it today you would lose (2,500) from holding Samsung Special Purpose or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YeSUN Tech CoLtd vs. Samsung Special Purpose
Performance |
| Timeline |
| YeSUN Tech CoLtd |
| Samsung Special Purpose |
YeSUN Tech and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YeSUN Tech and Samsung Special
The main advantage of trading using opposite YeSUN Tech and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YeSUN Tech position performs unexpectedly, Samsung Special 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 Special will offset losses from the drop in Samsung Special's long position.| YeSUN Tech vs. Korea Petro Chemical | YeSUN Tech vs. Tae Kyung Chemical | YeSUN Tech vs. Kukdong Oil Chemicals | YeSUN Tech vs. Iljin Display |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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