Correlation Between Samsung Kodex and ACE 10Y
Can any of the company-specific risk be diversified away by investing in both Samsung Kodex and ACE 10Y 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 Samsung Kodex and ACE 10Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Kodex Korea and ACE 10Y KTB, you can compare the effects of market volatilities on Samsung Kodex and ACE 10Y 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 Samsung Kodex with a short position of ACE 10Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Kodex and ACE 10Y.
Diversification Opportunities for Samsung Kodex and ACE 10Y
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and ACE is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Kodex Korea and ACE 10Y KTB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACE 10Y KTB and Samsung Kodex 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 Samsung Kodex Korea are associated (or correlated) with ACE 10Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACE 10Y KTB has no effect on the direction of Samsung Kodex i.e., Samsung Kodex and ACE 10Y go up and down completely randomly.
Pair Corralation between Samsung Kodex and ACE 10Y
Assuming the 90 days trading horizon Samsung Kodex Korea is expected to generate 3.92 times more return on investment than ACE 10Y. However, Samsung Kodex is 3.92 times more volatile than ACE 10Y KTB. It trades about 0.06 of its potential returns per unit of risk. ACE 10Y KTB is currently generating about 0.05 per unit of risk. If you would invest 1,077,500 in Samsung Kodex Korea on November 2, 2024 and sell it today you would earn a total of 486,500 from holding Samsung Kodex Korea or generate 45.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.37% |
| Values | Daily Returns |
Samsung Kodex Korea vs. ACE 10Y KTB
Performance |
| Timeline |
| Samsung Kodex Korea |
| ACE 10Y KTB |
Samsung Kodex and ACE 10Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Kodex and ACE 10Y
The main advantage of trading using opposite Samsung Kodex and ACE 10Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Kodex position performs unexpectedly, ACE 10Y 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 ACE 10Y will offset losses from the drop in ACE 10Y's long position.| Samsung Kodex vs. Samsung KODEX IT | Samsung Kodex vs. Samsung KODEX Machinary | Samsung Kodex vs. Samsung KODEX Samsung | Samsung Kodex vs. Samsung Asset Management |
| ACE 10Y vs. ACE KRX Physical | ACE 10Y vs. ACE NASDAQ100 3070 | ACE 10Y vs. ACE EV Value | ACE 10Y vs. ACE NVIDIA30 Blend |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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