Correlation Between Samsung Biologics and Sungwoo Techron
Can any of the company-specific risk be diversified away by investing in both Samsung Biologics and Sungwoo Techron 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 Biologics and Sungwoo Techron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Biologics Co and Sungwoo Techron CoLtd, you can compare the effects of market volatilities on Samsung Biologics and Sungwoo Techron 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 Biologics with a short position of Sungwoo Techron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Biologics and Sungwoo Techron.
Diversification Opportunities for Samsung Biologics and Sungwoo Techron
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Sungwoo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Biologics Co and Sungwoo Techron CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo Techron CoLtd and Samsung Biologics 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 Biologics Co are associated (or correlated) with Sungwoo Techron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Techron CoLtd has no effect on the direction of Samsung Biologics i.e., Samsung Biologics and Sungwoo Techron go up and down completely randomly.
Pair Corralation between Samsung Biologics and Sungwoo Techron
Assuming the 90 days trading horizon Samsung Biologics Co is expected to generate 0.6 times more return on investment than Sungwoo Techron. However, Samsung Biologics Co is 1.66 times less risky than Sungwoo Techron. It trades about 0.03 of its potential returns per unit of risk. Sungwoo Techron CoLtd is currently generating about -0.02 per unit of risk. If you would invest 81,100,000 in Samsung Biologics Co on October 4, 2024 and sell it today you would earn a total of 13,800,000 from holding Samsung Biologics Co or generate 17.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Biologics Co vs. Sungwoo Techron CoLtd
Performance |
Timeline |
Samsung Biologics |
Sungwoo Techron CoLtd |
Samsung Biologics and Sungwoo Techron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Biologics and Sungwoo Techron
The main advantage of trading using opposite Samsung Biologics and Sungwoo Techron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Biologics position performs unexpectedly, Sungwoo Techron 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 Sungwoo Techron will offset losses from the drop in Sungwoo Techron's long position.Samsung Biologics vs. ABL Bio | Samsung Biologics vs. Green Cross Lab | Samsung Biologics vs. MedPacto | Samsung Biologics vs. OLIPASS |
Sungwoo Techron vs. Cuckoo Homesys Co | Sungwoo Techron vs. ITM Semiconductor Co | Sungwoo Techron vs. Cots Technology Co | Sungwoo Techron vs. ABOV Semiconductor 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |