Correlation Between Samsung KODEX and Samsung KODEX

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

By analyzing existing cross correlation between Samsung KODEX IT and Samsung KODEX Samsung, you can compare the effects of market volatilities on Samsung KODEX and Samsung KODEX 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 KODEX with a short position of Samsung KODEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung KODEX and Samsung KODEX.

Diversification Opportunities for Samsung KODEX and Samsung KODEX

0.0

Correlation Coefficient

Samsung KODEX  Samsung KODEX

Pay attention - limited upside

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

Pair Corralation between Samsung KODEX and Samsung KODEX

If you would invest  808,500  in Samsung KODEX Samsung on December 25, 2024 and sell it today you would earn a total of  52,500  from holding Samsung KODEX Samsung or generate 6.49% return on investment over 90 days.

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

Samsung KODEX IT  vs.  Samsung KODEX Samsung

Samsung KODEX IT

Risk-Adjusted Performance

OK

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

Samsung KODEX Samsung

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung KODEX Samsung are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Samsung KODEX may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Samsung KODEX and Samsung KODEX

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

The idea behind Samsung KODEX IT and Samsung KODEX Samsung 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.