Correlation Between Samyung Trading and SV Investment
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and SV Investment 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 Samyung Trading and SV Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyung Trading Co and SV Investment, you can compare the effects of market volatilities on Samyung Trading and SV Investment 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 Samyung Trading with a short position of SV Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and SV Investment.
Diversification Opportunities for Samyung Trading and SV Investment
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyung and 289080 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and SV Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SV Investment and Samyung Trading 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 Samyung Trading Co are associated (or correlated) with SV Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SV Investment has no effect on the direction of Samyung Trading i.e., Samyung Trading and SV Investment go up and down completely randomly.
Pair Corralation between Samyung Trading and SV Investment
Assuming the 90 days trading horizon Samyung Trading Co is expected to generate 0.25 times more return on investment than SV Investment. However, Samyung Trading Co is 4.04 times less risky than SV Investment. It trades about 0.09 of its potential returns per unit of risk. SV Investment is currently generating about -0.12 per unit of risk. If you would invest 1,269,000 in Samyung Trading Co on September 23, 2024 and sell it today you would earn a total of 36,000 from holding Samyung Trading Co or generate 2.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Samyung Trading Co vs. SV Investment
Performance |
Timeline |
Samyung Trading |
SV Investment |
Samyung Trading and SV Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samyung Trading and SV Investment
The main advantage of trading using opposite Samyung Trading and SV Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, SV Investment 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 SV Investment will offset losses from the drop in SV Investment's long position.Samyung Trading vs. Woorim Machinery Co | Samyung Trading vs. SEOJEON ELECTRIC MACHINERY | Samyung Trading vs. Shinsegae Information Communication | Samyung Trading vs. Mobileleader CoLtd |
SV Investment vs. Dongnam Chemical Co | SV Investment vs. Pyung Hwa Industrial | SV Investment vs. KPX Green Chemical | SV Investment vs. Eagon Industrial 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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