Correlation Between Carriesoft and Sam Chun
Can any of the company-specific risk be diversified away by investing in both Carriesoft and Sam Chun 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 Carriesoft and Sam Chun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriesoft Co and Sam Chun Dang, you can compare the effects of market volatilities on Carriesoft and Sam Chun 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 Carriesoft with a short position of Sam Chun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriesoft and Sam Chun.
Diversification Opportunities for Carriesoft and Sam Chun
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carriesoft and Sam is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Carriesoft Co and Sam Chun Dang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Chun Dang and Carriesoft 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 Carriesoft Co are associated (or correlated) with Sam Chun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Chun Dang has no effect on the direction of Carriesoft i.e., Carriesoft and Sam Chun go up and down completely randomly.
Pair Corralation between Carriesoft and Sam Chun
Assuming the 90 days trading horizon Carriesoft Co is expected to generate 0.93 times more return on investment than Sam Chun. However, Carriesoft Co is 1.07 times less risky than Sam Chun. It trades about -0.08 of its potential returns per unit of risk. Sam Chun Dang is currently generating about -0.23 per unit of risk. If you would invest 435,500 in Carriesoft Co on August 29, 2024 and sell it today you would lose (37,000) from holding Carriesoft Co or give up 8.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriesoft Co vs. Sam Chun Dang
Performance |
| Timeline |
| Carriesoft |
| Sam Chun Dang |
Carriesoft and Sam Chun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriesoft and Sam Chun
The main advantage of trading using opposite Carriesoft and Sam Chun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriesoft position performs unexpectedly, Sam Chun 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 Sam Chun will offset losses from the drop in Sam Chun's long position.| Carriesoft vs. Kukil Metal Co | Carriesoft vs. BGF Retail Co | Carriesoft vs. Dongil Metal Co | Carriesoft vs. Netmarble Games Corp |
| Sam Chun vs. Medy Tox | Sam Chun vs. Busan Industrial Co | Sam Chun vs. Busan Ind | Sam Chun vs. Mirae Asset Daewoo |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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