Correlation Between Sangsangin Investment and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Samsung Publishing 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 Sangsangin Investment and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Samsung Publishing Co, you can compare the effects of market volatilities on Sangsangin Investment and Samsung Publishing 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 Sangsangin Investment with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Samsung Publishing.
Diversification Opportunities for Sangsangin Investment and Samsung Publishing
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsangin and Samsung is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Samsung Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Publishing has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Samsung Publishing go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Samsung Publishing
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.44 times more return on investment than Samsung Publishing. However, Sangsangin Investment Securities is 2.3 times less risky than Samsung Publishing. It trades about 0.17 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.12 per unit of risk. If you would invest 41,800 in Sangsangin Investment Securities on October 12, 2024 and sell it today you would earn a total of 1,300 from holding Sangsangin Investment Securities or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Samsung Publishing Co
Performance |
| Timeline |
| Sangsangin Investment |
| Samsung Publishing |
Sangsangin Investment and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Samsung Publishing
The main advantage of trading using opposite Sangsangin Investment and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Samsung Publishing 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 Publishing will offset losses from the drop in Samsung Publishing's long position.| Sangsangin Investment vs. Samsung Life Insurance | Sangsangin Investment vs. Sangsin Energy Display | Sangsangin Investment vs. TJ media Co | Sangsangin Investment vs. Nasmedia Co |
| Samsung Publishing vs. Sangsangin Investment Securities | Samsung Publishing vs. Daiyang Metal Co | Samsung Publishing vs. Korea Investment Holdings | Samsung Publishing vs. DONGKUK TED METAL |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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