Correlation Between Samlip General and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Samlip General and Hankukpackage 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 Samlip General and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Hankukpackage Co, you can compare the effects of market volatilities on Samlip General and Hankukpackage 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 Samlip General with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Hankukpackage.
Diversification Opportunities for Samlip General and Hankukpackage
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samlip and Hankukpackage is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and Samlip General 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 Samlip General Foods are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Samlip General i.e., Samlip General and Hankukpackage go up and down completely randomly.
Pair Corralation between Samlip General and Hankukpackage
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 0.47 times more return on investment than Hankukpackage. However, Samlip General Foods is 2.13 times less risky than Hankukpackage. It trades about 0.16 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.04 per unit of risk. If you would invest 4,690,000 in Samlip General Foods on September 25, 2024 and sell it today you would earn a total of 230,000 from holding Samlip General Foods or generate 4.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samlip General Foods vs. Hankukpackage Co
Performance |
Timeline |
Samlip General Foods |
Hankukpackage |
Samlip General and Hankukpackage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samlip General and Hankukpackage
The main advantage of trading using opposite Samlip General and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.Samlip General vs. NewFlex Technology Co | Samlip General vs. Dong A Steel Technology | Samlip General vs. Coloray International Investment | Samlip General vs. Daou Technology |
Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Naver | Hankukpackage vs. Gyeongnam Steel 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |