Correlation Between KyungIn Electronics and Samsung Special

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

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

Diversification Opportunities for KyungIn Electronics and Samsung Special

0.0

Correlation Coefficient

KyungIn Electronics  Samsung Special

Pay attention - limited upside

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

Pair Corralation between KyungIn Electronics and Samsung Special

Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.71 times more return on investment than Samsung Special. However, KyungIn Electronics Co is 1.41 times less risky than Samsung Special. It trades about 0.01 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about -0.02 per unit of risk. If you would invest  2,375,206  in KyungIn Electronics Co on September 13, 2024 and sell it today you would lose (175,206) from holding KyungIn Electronics Co or give up 7.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KyungIn Electronics Co  vs.  Samsung Special Purpose

KyungIn Electronics

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KyungIn Electronics Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, KyungIn Electronics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Samsung Special Purpose

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with KyungIn Electronics and Samsung Special

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

The idea behind KyungIn Electronics Co and Samsung Special Purpose 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.