Correlation Between Empire State and Samyoung M
Can any of the company-specific risk be diversified away by investing in both Empire State and Samyoung M 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 Empire State and Samyoung M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Samyoung M Tek Co, you can compare the effects of market volatilities on Empire State and Samyoung M 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 Empire State with a short position of Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Samyoung M.
Diversification Opportunities for Empire State and Samyoung M
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and Samyoung is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek and Empire State 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 Empire State Realty are associated (or correlated) with Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of Empire State i.e., Empire State and Samyoung M go up and down completely randomly.
Pair Corralation between Empire State and Samyoung M
Given the investment horizon of 90 days Empire State is expected to generate 3.67 times less return on investment than Samyoung M. But when comparing it to its historical volatility, Empire State Realty is 1.95 times less risky than Samyoung M. It trades about 0.15 of its potential returns per unit of risk. Samyoung M Tek Co is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 398,000 in Samyoung M Tek Co on August 29, 2024 and sell it today you would earn a total of 61,000 from holding Samyoung M Tek Co or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire State Realty vs. Samyoung M Tek Co
Performance |
| Timeline |
| Empire State Realty |
| Samyoung M Tek |
Empire State and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Samyoung M
The main advantage of trading using opposite Empire State and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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