Correlation Between Wireless Power and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Samsung SDI 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 Wireless Power and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and Samsung SDI, you can compare the effects of market volatilities on Wireless Power and Samsung SDI 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 Wireless Power with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Samsung SDI.
Diversification Opportunities for Wireless Power and Samsung SDI
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wireless and Samsung is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Samsung SDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and Wireless Power 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 Wireless Power Amplifier are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of Wireless Power i.e., Wireless Power and Samsung SDI go up and down completely randomly.
Pair Corralation between Wireless Power and Samsung SDI
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 3.55 times more return on investment than Samsung SDI. However, Wireless Power is 3.55 times more volatile than Samsung SDI. It trades about 0.4 of its potential returns per unit of risk. Samsung SDI is currently generating about -0.27 per unit of risk. If you would invest 279,000 in Wireless Power Amplifier on November 5, 2024 and sell it today you would earn a total of 195,000 from holding Wireless Power Amplifier or generate 69.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Samsung SDI
Performance |
| Timeline |
| Wireless Power Amplifier |
| Samsung SDI |
Wireless Power and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Samsung SDI
The main advantage of trading using opposite Wireless Power and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Samsung SDI 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 SDI will offset losses from the drop in Samsung SDI's long position.| Wireless Power vs. NICE Information Service | Wireless Power vs. SCI Information Service | Wireless Power vs. Insung Information Co | Wireless Power vs. Ssangyong Information Communication |
| Samsung SDI vs. KakaoBank Corp | Samsung SDI vs. Korea Alcohol Industrial | Samsung SDI vs. Dongil Metal Co | Samsung SDI vs. Duksan Hi Metal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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