Correlation Between CHINA TONTINE and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE 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 CHINA TONTINE and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and Samsung SDI Co, you can compare the effects of market volatilities on CHINA TONTINE 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 CHINA TONTINE with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Samsung SDI.
Diversification Opportunities for CHINA TONTINE and Samsung SDI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and Samsung SDI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and CHINA TONTINE 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 CHINA TONTINE WINES 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 CHINA TONTINE i.e., CHINA TONTINE and Samsung SDI go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Samsung SDI
If you would invest 7.00 in CHINA TONTINE WINES on September 4, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. Samsung SDI Co
Performance |
| Timeline |
| CHINA TONTINE WINES |
| Samsung SDI |
CHINA TONTINE and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Samsung SDI
The main advantage of trading using opposite CHINA TONTINE and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE 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.| CHINA TONTINE vs. Data3 Limited | CHINA TONTINE vs. DATAGROUP SE | CHINA TONTINE vs. Clean Energy Fuels | CHINA TONTINE vs. GALENA MINING LTD |
| Samsung SDI vs. CHINA TONTINE WINES | Samsung SDI vs. USWE SPORTS AB | Samsung SDI vs. Cleanaway Waste Management | Samsung SDI vs. NTG Nordic Transport |
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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