Correlation Between Samsung Card and Cytogen
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Cytogen 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 Card and Cytogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and Cytogen, you can compare the effects of market volatilities on Samsung Card and Cytogen 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 Card with a short position of Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Cytogen.
Diversification Opportunities for Samsung Card and Cytogen
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Cytogen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen and Samsung Card 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 Card Co are associated (or correlated) with Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Samsung Card i.e., Samsung Card and Cytogen go up and down completely randomly.
Pair Corralation between Samsung Card and Cytogen
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.51 times more return on investment than Cytogen. However, Samsung Card Co is 1.98 times less risky than Cytogen. It trades about 0.03 of its potential returns per unit of risk. Cytogen is currently generating about -0.23 per unit of risk. If you would invest 3,796,627 in Samsung Card Co on March 14, 2024 and sell it today you would earn a total of 88,373 from holding Samsung Card Co or generate 2.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Card Co vs. Cytogen
Performance |
Timeline |
Samsung Card |
Cytogen |
Samsung Card and Cytogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Card and Cytogen
The main advantage of trading using opposite Samsung Card and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.Samsung Card vs. Busan Industrial Co | Samsung Card vs. Finebesteel | Samsung Card vs. Shinhan Inverse WTI | Samsung Card vs. Fine Besteel Co |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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