Correlation Between SAMYOUNG M and Samyung Trading

Can any of the company-specific risk be diversified away by investing in both SAMYOUNG M and Samyung Trading 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 SAMYOUNG M and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SAMYOUNG M Tek Co and Samyung Trading Co, you can compare the effects of market volatilities on SAMYOUNG M and Samyung Trading 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 SAMYOUNG M with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMYOUNG M and Samyung Trading.

Diversification Opportunities for SAMYOUNG M and Samyung Trading

0.0

Correlation Coefficient

SAMYOUNG M  Samyung Trading

Pay attention - limited upside

The 3 months correlation between SAMYOUNG and Samyung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAMYOUNG M Tek Co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and SAMYOUNG M 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 SAMYOUNG M Tek Co are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of SAMYOUNG M i.e., SAMYOUNG M and Samyung Trading go up and down completely randomly.

Pair Corralation between SAMYOUNG M and Samyung Trading

If you would invest  1,233,722  in Samyung Trading Co on October 5, 2024 and sell it today you would earn a total of  38,278  from holding Samyung Trading Co or generate 3.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SAMYOUNG M Tek Co  vs.  Samyung Trading Co

SAMYOUNG M Tek

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days SAMYOUNG M Tek Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SAMYOUNG M is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Samyung Trading

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samyung Trading Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Samyung Trading is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SAMYOUNG M and Samyung Trading

The main advantage of trading using opposite SAMYOUNG M and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMYOUNG M position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.

The idea behind SAMYOUNG M Tek Co and Samyung Trading Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.