Correlation Between Hotel Shilla and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Hotel Shilla 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 Hotel Shilla and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Shilla Co and Samsung Publishing Co, you can compare the effects of market volatilities on Hotel Shilla 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 Hotel Shilla with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Shilla and Samsung Publishing.
Diversification Opportunities for Hotel Shilla and Samsung Publishing
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hotel and Samsung is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Shilla Co and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Hotel Shilla 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 Hotel Shilla Co 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 Hotel Shilla i.e., Hotel Shilla and Samsung Publishing go up and down completely randomly.
Pair Corralation between Hotel Shilla and Samsung Publishing
Assuming the 90 days trading horizon Hotel Shilla Co is expected to under-perform the Samsung Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Hotel Shilla Co is 2.6 times less risky than Samsung Publishing. The stock trades about -0.35 of its potential returns per unit of risk. The Samsung Publishing Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,537,000 in Samsung Publishing Co on November 7, 2024 and sell it today you would lose (24,000) from holding Samsung Publishing Co or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Shilla Co vs. Samsung Publishing Co
Performance |
| Timeline |
| Hotel Shilla |
| Samsung Publishing |
Hotel Shilla and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Shilla and Samsung Publishing
The main advantage of trading using opposite Hotel Shilla and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Shilla 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.| Hotel Shilla vs. Choil Aluminum | Hotel Shilla vs. Samsung Life Insurance | Hotel Shilla vs. Seoul Electronics Telecom | Hotel Shilla vs. Heungkuk Metaltech CoLtd |
| Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |