Correlation Between Raontech and Samlip General
Can any of the company-specific risk be diversified away by investing in both Raontech 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 Raontech and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raontech and Samlip General Foods, you can compare the effects of market volatilities on Raontech 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 Raontech with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raontech and Samlip General.
Diversification Opportunities for Raontech and Samlip General
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Raontech and Samlip is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Raontech 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 Raontech 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 Raontech 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 Raontech i.e., Raontech and Samlip General go up and down completely randomly.
Pair Corralation between Raontech and Samlip General
Assuming the 90 days trading horizon Raontech is expected to generate 2.28 times more return on investment than Samlip General. However, Raontech is 2.28 times more volatile than Samlip General Foods. It trades about 0.47 of its potential returns per unit of risk. Samlip General Foods is currently generating about 0.51 per unit of risk. If you would invest 259,000 in Raontech on October 11, 2024 and sell it today you would earn a total of 118,500 from holding Raontech or generate 45.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raontech vs. Samlip General Foods
Performance |
| Timeline |
| Raontech |
| Samlip General Foods |
Raontech and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raontech and Samlip General
The main advantage of trading using opposite Raontech and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raontech 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.| Raontech vs. Samlip General Foods | Raontech vs. Daol Investment Securities | Raontech vs. Atinum Investment Co | Raontech vs. JYP Entertainment Corp |
| Samlip General vs. Dongbang Transport Logistics | Samlip General vs. KMH Hitech Co | Samlip General vs. V One Tech Co | Samlip General vs. Raontech |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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