Correlation Between Samsung SDI and REVO INSURANCE
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and REVO INSURANCE 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 SDI and REVO INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI Co and REVO INSURANCE SPA, you can compare the effects of market volatilities on Samsung SDI and REVO INSURANCE 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 SDI with a short position of REVO INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and REVO INSURANCE.
Diversification Opportunities for Samsung SDI and REVO INSURANCE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and REVO is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI Co and REVO INSURANCE SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REVO INSURANCE SPA and Samsung SDI 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 SDI Co are associated (or correlated) with REVO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REVO INSURANCE SPA has no effect on the direction of Samsung SDI i.e., Samsung SDI and REVO INSURANCE go up and down completely randomly.
Pair Corralation between Samsung SDI and REVO INSURANCE
Assuming the 90 days trading horizon Samsung SDI Co is expected to under-perform the REVO INSURANCE. In addition to that, Samsung SDI is 1.19 times more volatile than REVO INSURANCE SPA. It trades about -0.06 of its total potential returns per unit of risk. REVO INSURANCE SPA is currently generating about 0.06 per unit of volatility. If you would invest 1,080 in REVO INSURANCE SPA on November 27, 2024 and sell it today you would earn a total of 80.00 from holding REVO INSURANCE SPA or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung SDI Co vs. REVO INSURANCE SPA
Performance |
| Timeline |
| Samsung SDI |
| REVO INSURANCE SPA |
Samsung SDI and REVO INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and REVO INSURANCE
The main advantage of trading using opposite Samsung SDI and REVO INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, REVO INSURANCE 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 REVO INSURANCE will offset losses from the drop in REVO INSURANCE's long position.| Samsung SDI vs. Evolent Health | Samsung SDI vs. Bumrungrad Hospital PCL | Samsung SDI vs. Chalice Mining Limited | Samsung SDI vs. MCEWEN MINING INC |
| REVO INSURANCE vs. Diamyd Medical AB | REVO INSURANCE vs. NORWEGIAN AIR SHUT | REVO INSURANCE vs. Peijia Medical Limited | REVO INSURANCE vs. Enter Air SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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