Correlation Between Lindeman Asia and Samyoung M
Can any of the company-specific risk be diversified away by investing in both Lindeman Asia and Samyoung M 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 Lindeman Asia and Samyoung M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindeman Asia Investment and Samyoung M Tek Co, you can compare the effects of market volatilities on Lindeman Asia and Samyoung M 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 Lindeman Asia with a short position of Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindeman Asia and Samyoung M.
Diversification Opportunities for Lindeman Asia and Samyoung M
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lindeman and Samyoung is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lindeman Asia Investment and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek and Lindeman Asia 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 Lindeman Asia Investment are associated (or correlated) with Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of Lindeman Asia i.e., Lindeman Asia and Samyoung M go up and down completely randomly.
Pair Corralation between Lindeman Asia and Samyoung M
Assuming the 90 days trading horizon Lindeman Asia Investment is expected to generate 2.09 times more return on investment than Samyoung M. However, Lindeman Asia is 2.09 times more volatile than Samyoung M Tek Co. It trades about 0.01 of its potential returns per unit of risk. Samyoung M Tek Co is currently generating about 0.0 per unit of risk. If you would invest 487,200 in Lindeman Asia Investment on September 14, 2024 and sell it today you would lose (77,700) from holding Lindeman Asia Investment or give up 15.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.39% |
| Values | Daily Returns |
Lindeman Asia Investment vs. Samyoung M Tek Co
Performance |
| Timeline |
| Lindeman Asia Investment |
| Samyoung M Tek |
Lindeman Asia and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindeman Asia and Samyoung M
The main advantage of trading using opposite Lindeman Asia and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindeman Asia position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.| Lindeman Asia vs. Nh Investment And | Lindeman Asia vs. Hanwha InvestmentSecurities Co | Lindeman Asia vs. DSC Investment | Lindeman Asia vs. Solution Advanced Technology |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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