Correlation Between DSC Investment and Samsung CT
Can any of the company-specific risk be diversified away by investing in both DSC Investment and Samsung CT 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 DSC Investment and Samsung CT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSC Investment and Samsung CT Corp, you can compare the effects of market volatilities on DSC Investment and Samsung CT 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 DSC Investment with a short position of Samsung CT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSC Investment and Samsung CT.
Diversification Opportunities for DSC Investment and Samsung CT
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DSC and Samsung is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DSC Investment and Samsung CT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung CT Corp and DSC Investment 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 DSC Investment are associated (or correlated) with Samsung CT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung CT Corp has no effect on the direction of DSC Investment i.e., DSC Investment and Samsung CT go up and down completely randomly.
Pair Corralation between DSC Investment and Samsung CT
Assuming the 90 days trading horizon DSC Investment is expected to generate 0.77 times more return on investment than Samsung CT. However, DSC Investment is 1.29 times less risky than Samsung CT. It trades about -0.01 of its potential returns per unit of risk. Samsung CT Corp is currently generating about -0.17 per unit of risk. If you would invest 284,500 in DSC Investment on September 12, 2024 and sell it today you would lose (5,500) from holding DSC Investment or give up 1.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.31% |
Values | Daily Returns |
DSC Investment vs. Samsung CT Corp
Performance |
Timeline |
DSC Investment |
Samsung CT Corp |
DSC Investment and Samsung CT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DSC Investment and Samsung CT
The main advantage of trading using opposite DSC Investment and Samsung CT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSC Investment position performs unexpectedly, Samsung CT 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 Samsung CT will offset losses from the drop in Samsung CT's long position.DSC Investment vs. Nh Investment And | DSC Investment vs. Hanwha InvestmentSecurities Co | DSC Investment vs. Solution Advanced Technology | DSC Investment vs. Busan Industrial Co |
Samsung CT vs. Hana Materials | Samsung CT vs. Jeong Moon Information | Samsung CT vs. TOPMATERIAL LTD | Samsung CT vs. Insung Information 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Transaction History View history of all your transactions and understand their impact on performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |