Correlation Between Innometry and Samlip General
Can any of the company-specific risk be diversified away by investing in both Innometry and Samlip General 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 Innometry and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Samlip General Foods, you can compare the effects of market volatilities on Innometry and Samlip General 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 Innometry with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Samlip General.
Diversification Opportunities for Innometry and Samlip General
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innometry and Samlip is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Innometry 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 Innometry Co are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Innometry i.e., Innometry and Samlip General go up and down completely randomly.
Pair Corralation between Innometry and Samlip General
Assuming the 90 days trading horizon Innometry Co is expected to under-perform the Samlip General. In addition to that, Innometry is 1.31 times more volatile than Samlip General Foods. It trades about -0.16 of its total potential returns per unit of risk. Samlip General Foods is currently generating about -0.02 per unit of volatility. If you would invest 4,921,326 in Samlip General Foods on November 1, 2024 and sell it today you would lose (211,326) from holding Samlip General Foods or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Samlip General Foods
Performance |
| Timeline |
| Innometry |
| Samlip General Foods |
Innometry and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Samlip General
The main advantage of trading using opposite Innometry and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Innometry vs. Lotte Data Communication | Innometry vs. Korean Reinsurance Co | Innometry vs. DONGKUK TED METAL | Innometry vs. DB Insurance Co |
| Samlip General vs. Sangsangin Investment Securities | Samlip General vs. Pureun Mutual Savings | Samlip General vs. Atinum Investment Co | Samlip General vs. Nh Investment And |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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