Correlation Between Samsung Biologics and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Samsung Biologics and Daishin Balance 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 Daishin Balance 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 Daishin Balance No8, you can compare the effects of market volatilities on Samsung Biologics and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Biologics and Daishin Balance.
Diversification Opportunities for Samsung Biologics and Daishin Balance
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Daishin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Biologics Co and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of Samsung Biologics i.e., Samsung Biologics and Daishin Balance go up and down completely randomly.
Pair Corralation between Samsung Biologics and Daishin Balance
Assuming the 90 days trading horizon Samsung Biologics Co is expected to generate 0.47 times more return on investment than Daishin Balance. However, Samsung Biologics Co is 2.14 times less risky than Daishin Balance. It trades about 0.23 of its potential returns per unit of risk. Daishin Balance No8 is currently generating about 0.07 per unit of risk. If you would invest 91,600,000 in Samsung Biologics Co on September 18, 2024 and sell it today you would earn a total of 8,300,000 from holding Samsung Biologics Co or generate 9.06% 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. Daishin Balance No8
Performance |
Timeline |
Samsung Biologics |
Daishin Balance No8 |
Samsung Biologics and Daishin Balance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Biologics and Daishin Balance
The main advantage of trading using opposite Samsung Biologics and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Biologics position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.Samsung Biologics vs. SK Bioscience Co | Samsung Biologics vs. ABL Bio | Samsung Biologics vs. Green Cross Lab | Samsung Biologics vs. MedPacto |
Daishin Balance vs. Samsung Electronics Co | Daishin Balance vs. Samsung Electronics Co | Daishin Balance vs. LG Energy Solution | Daishin Balance vs. SK Hynix |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |