Correlation Between Biodyne and Samlip General
Can any of the company-specific risk be diversified away by investing in both Biodyne 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 Biodyne and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biodyne Co and Samlip General Foods, you can compare the effects of market volatilities on Biodyne 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 Biodyne with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biodyne and Samlip General.
Diversification Opportunities for Biodyne and Samlip General
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biodyne and Samlip is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Biodyne 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 Biodyne 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 Biodyne 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 Biodyne i.e., Biodyne and Samlip General go up and down completely randomly.
Pair Corralation between Biodyne and Samlip General
Assuming the 90 days trading horizon Biodyne Co is expected to generate 3.27 times more return on investment than Samlip General. However, Biodyne is 3.27 times more volatile than Samlip General Foods. It trades about 0.08 of its potential returns per unit of risk. Samlip General Foods is currently generating about -0.06 per unit of risk. If you would invest 507,000 in Biodyne Co on September 3, 2024 and sell it today you would earn a total of 1,254,000 from holding Biodyne Co or generate 247.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biodyne Co vs. Samlip General Foods
Performance |
| Timeline |
| Biodyne |
| Samlip General Foods |
Biodyne and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biodyne and Samlip General
The main advantage of trading using opposite Biodyne and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biodyne 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.| Biodyne vs. Samsung Electronics Co | Biodyne vs. Samsung Electronics Co | Biodyne vs. LG Energy Solution | Biodyne vs. SK Hynix |
| Samlip General vs. Pan Entertainment Co | Samlip General vs. Barunson Entertainment Arts | Samlip General vs. Finebesteel | Samlip General vs. Kaonmedia 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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