Correlation Between Access Bio and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Access Bio and Samsung Fire 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 Access Bio and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and Samsung Fire Marine, you can compare the effects of market volatilities on Access Bio and Samsung Fire 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 Access Bio with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and Samsung Fire.
Diversification Opportunities for Access Bio and Samsung Fire
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Access and Samsung is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Access Bio 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 Access Bio are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Access Bio i.e., Access Bio and Samsung Fire go up and down completely randomly.
Pair Corralation between Access Bio and Samsung Fire
Assuming the 90 days trading horizon Access Bio is expected to generate 3.65 times more return on investment than Samsung Fire. However, Access Bio is 3.65 times more volatile than Samsung Fire Marine. It trades about 0.06 of its potential returns per unit of risk. Samsung Fire Marine is currently generating about -0.14 per unit of risk. If you would invest 542,000 in Access Bio on November 1, 2024 and sell it today you would earn a total of 22,000 from holding Access Bio or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. Samsung Fire Marine
Performance |
| Timeline |
| Access Bio |
| Samsung Fire Marine |
Access Bio and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and Samsung Fire
The main advantage of trading using opposite Access Bio and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, Samsung Fire 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 Fire will offset losses from the drop in Samsung Fire's long position.| Access Bio vs. Daesung Industrial Co | Access Bio vs. Hyunwoo Industrial Co | Access Bio vs. Wonil Special Steel | Access Bio vs. Korea Industrial Co |
| Samsung Fire vs. Asiana Airlines | Samsung Fire vs. Sempio Foods Co | Samsung Fire vs. Woori Technology | Samsung Fire vs. Ilji Technology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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