Correlation Between Dongbang Transport and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport 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 Dongbang Transport and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Samsung Publishing Co, you can compare the effects of market volatilities on Dongbang Transport 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 Dongbang Transport with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Samsung Publishing.
Diversification Opportunities for Dongbang Transport and Samsung Publishing
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongbang and Samsung is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Dongbang Transport 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 Dongbang Transport Logistics 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 Dongbang Transport i.e., Dongbang Transport and Samsung Publishing go up and down completely randomly.
Pair Corralation between Dongbang Transport and Samsung Publishing
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the Samsung Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Dongbang Transport Logistics is 2.08 times less risky than Samsung Publishing. The stock trades about -0.17 of its potential returns per unit of risk. The Samsung Publishing Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,486,000 in Samsung Publishing Co on September 3, 2024 and sell it today you would lose (96,000) from holding Samsung Publishing Co or give up 6.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Samsung Publishing Co
Performance |
| Timeline |
| Dongbang Transport |
| Samsung Publishing |
Dongbang Transport and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Samsung Publishing
The main advantage of trading using opposite Dongbang Transport and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport 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.| Dongbang Transport vs. AptaBio Therapeutics | Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Dream Security co | Dongbang Transport vs. Microfriend |
| Samsung Publishing vs. Sangsin Energy Display | Samsung Publishing vs. Samsung Life Insurance | Samsung Publishing vs. Dongbang Transport Logistics | Samsung Publishing vs. InfoBank |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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