Correlation Between Sam A and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Sam A 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 Sam A and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sam A Pharm Co and Samsung Publishing Co, you can compare the effects of market volatilities on Sam A 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 Sam A with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam A and Samsung Publishing.
Diversification Opportunities for Sam A and Samsung Publishing
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and Samsung is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sam A Pharm 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 Sam A 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 Sam A Pharm 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 Sam A i.e., Sam A and Samsung Publishing go up and down completely randomly.
Pair Corralation between Sam A and Samsung Publishing
Assuming the 90 days trading horizon Sam A Pharm Co is expected to generate 0.67 times more return on investment than Samsung Publishing. However, Sam A Pharm Co is 1.49 times less risky than Samsung Publishing. It trades about 0.06 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about 0.0 per unit of risk. If you would invest 1,661,478 in Sam A Pharm Co on October 25, 2024 and sell it today you would earn a total of 23,522 from holding Sam A Pharm Co or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam A Pharm Co vs. Samsung Publishing Co
Performance |
| Timeline |
| Sam A Pharm |
| Samsung Publishing |
Sam A and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam A and Samsung Publishing
The main advantage of trading using opposite Sam A and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam A 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.| Sam A vs. Ewon Comfortech Co | Sam A vs. Aprogen Healthcare Games | Sam A vs. PH Tech Co | Sam A vs. Yura Tech Co |
| Samsung Publishing vs. Wireless Power Amplifier | Samsung Publishing vs. Kukdong Oil Chemicals | Samsung Publishing vs. Daishin Information Communications | Samsung Publishing vs. Digital Power Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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