Correlation Between Samsung SDI and Daol Investment
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and Daol Investment 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 SDI and Daol Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI and Daol Investment Securities, you can compare the effects of market volatilities on Samsung SDI and Daol Investment 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 SDI with a short position of Daol Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and Daol Investment.
Diversification Opportunities for Samsung SDI and Daol Investment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Daol is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI and Daol Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daol Investment Secu and Samsung SDI 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 SDI are associated (or correlated) with Daol Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daol Investment Secu has no effect on the direction of Samsung SDI i.e., Samsung SDI and Daol Investment go up and down completely randomly.
Pair Corralation between Samsung SDI and Daol Investment
Assuming the 90 days trading horizon Samsung SDI is expected to under-perform the Daol Investment. In addition to that, Samsung SDI is 1.68 times more volatile than Daol Investment Securities. It trades about -0.2 of its total potential returns per unit of risk. Daol Investment Securities is currently generating about 0.02 per unit of volatility. If you would invest 304,500 in Daol Investment Securities on September 24, 2024 and sell it today you would earn a total of 3,000 from holding Daol Investment Securities or generate 0.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.41% |
Values | Daily Returns |
Samsung SDI vs. Daol Investment Securities
Performance |
Timeline |
Samsung SDI |
Daol Investment Secu |
Samsung SDI and Daol Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung SDI and Daol Investment
The main advantage of trading using opposite Samsung SDI and Daol Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, Daol Investment 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 Daol Investment will offset losses from the drop in Daol Investment's long position.Samsung SDI vs. Dongsin Engineering Construction | Samsung SDI vs. Doosan Fuel Cell | Samsung SDI vs. Daishin Balance 1 | Samsung SDI vs. Total Soft Bank |
Daol Investment vs. Samsung Electronics Co | Daol Investment vs. Samsung Electronics Co | Daol Investment vs. LG Energy Solution | Daol Investment 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |