Correlation Between Tae Kyung and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both Tae Kyung and SAMG Entertainment 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 Tae Kyung and SAMG Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tae Kyung Chemical and SAMG Entertainment Co, you can compare the effects of market volatilities on Tae Kyung and SAMG Entertainment 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 Tae Kyung with a short position of SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and SAMG Entertainment.
Diversification Opportunities for Tae Kyung and SAMG Entertainment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tae and SAMG is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung Chemical and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment and Tae Kyung 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 Tae Kyung Chemical are associated (or correlated) with SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of Tae Kyung i.e., Tae Kyung and SAMG Entertainment go up and down completely randomly.
Pair Corralation between Tae Kyung and SAMG Entertainment
Assuming the 90 days trading horizon Tae Kyung Chemical is expected to generate 0.52 times more return on investment than SAMG Entertainment. However, Tae Kyung Chemical is 1.93 times less risky than SAMG Entertainment. It trades about 0.0 of its potential returns per unit of risk. SAMG Entertainment Co is currently generating about -0.03 per unit of risk. If you would invest 1,176,942 in Tae Kyung Chemical on November 5, 2024 and sell it today you would lose (69,942) from holding Tae Kyung Chemical or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tae Kyung Chemical vs. SAMG Entertainment Co
Performance |
| Timeline |
| Tae Kyung Chemical |
| SAMG Entertainment |
Tae Kyung and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and SAMG Entertainment
The main advantage of trading using opposite Tae Kyung and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| Tae Kyung vs. Vitzro Tech Co | Tae Kyung vs. INNOX Advanced Materials | Tae Kyung vs. Solution Advanced Technology | Tae Kyung vs. A Tech Solution Co |
| SAMG Entertainment vs. Stic Investments | SAMG Entertainment vs. TS Investment Corp | SAMG Entertainment vs. Shinil Electronics Co | SAMG Entertainment vs. Cuckoo Electronics Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |