Correlation Between INNOX Advanced and Samsung Card
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced and Samsung Card 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 INNOX Advanced and Samsung Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and Samsung Card Co, you can compare the effects of market volatilities on INNOX Advanced and Samsung Card 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 INNOX Advanced with a short position of Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and Samsung Card.
Diversification Opportunities for INNOX Advanced and Samsung Card
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INNOX and Samsung is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced Materials and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card and INNOX Advanced 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 INNOX Advanced Materials are associated (or correlated) with Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of INNOX Advanced i.e., INNOX Advanced and Samsung Card go up and down completely randomly.
Pair Corralation between INNOX Advanced and Samsung Card
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to under-perform the Samsung Card. In addition to that, INNOX Advanced is 1.95 times more volatile than Samsung Card Co. It trades about -0.01 of its total potential returns per unit of risk. Samsung Card Co is currently generating about 0.06 per unit of volatility. If you would invest 2,859,408 in Samsung Card Co on September 3, 2024 and sell it today you would earn a total of 1,410,592 from holding Samsung Card Co or generate 49.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INNOX Advanced Materials vs. Samsung Card Co
Performance |
| Timeline |
| INNOX Advanced Materials |
| Samsung Card |
INNOX Advanced and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and Samsung Card
The main advantage of trading using opposite INNOX Advanced and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced position performs unexpectedly, Samsung Card 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 Card will offset losses from the drop in Samsung Card's long position.| INNOX Advanced vs. SK Hynix | INNOX Advanced vs. LX Semicon Co | INNOX Advanced vs. Tokai Carbon Korea | INNOX Advanced vs. People Technology |
| Samsung Card vs. CKH Food Health | Samsung Card vs. InnoTherapy | Samsung Card vs. INNOX Advanced Materials | Samsung Card vs. LG Household Healthcare |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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