Correlation Between Hurum and Samjin LND
Can any of the company-specific risk be diversified away by investing in both Hurum and Samjin LND 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 Hurum and Samjin LND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurum Co and Samjin LND Co, you can compare the effects of market volatilities on Hurum and Samjin LND 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 Hurum with a short position of Samjin LND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurum and Samjin LND.
Diversification Opportunities for Hurum and Samjin LND
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hurum and Samjin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hurum Co and Samjin LND Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samjin LND and Hurum 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 Hurum Co are associated (or correlated) with Samjin LND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samjin LND has no effect on the direction of Hurum i.e., Hurum and Samjin LND go up and down completely randomly.
Pair Corralation between Hurum and Samjin LND
Assuming the 90 days trading horizon Hurum Co is expected to generate 0.96 times more return on investment than Samjin LND. However, Hurum Co is 1.04 times less risky than Samjin LND. It trades about -0.1 of its potential returns per unit of risk. Samjin LND Co is currently generating about -0.14 per unit of risk. If you would invest 103,300 in Hurum Co on September 1, 2024 and sell it today you would lose (32,800) from holding Hurum Co or give up 31.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Hurum Co vs. Samjin LND Co
Performance |
| Timeline |
| Hurum |
| Samjin LND |
Hurum and Samjin LND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurum and Samjin LND
The main advantage of trading using opposite Hurum and Samjin LND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurum position performs unexpectedly, Samjin LND 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 Samjin LND will offset losses from the drop in Samjin LND's long position.| Hurum vs. Cube Entertainment | Hurum vs. Koh Young Technology | Hurum vs. NewFlex Technology Co | Hurum vs. T3 Entertainment Co |
| Samjin LND vs. Samsung Life Insurance | Samjin LND vs. Hankuk Steel Wire | Samjin LND vs. Dongil Steel Co | Samjin LND vs. J Steel 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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