Correlation Between Playgram and Samsung Securities
Can any of the company-specific risk be diversified away by investing in both Playgram and Samsung Securities 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 Playgram and Samsung Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playgram Co and Samsung Securities, you can compare the effects of market volatilities on Playgram and Samsung Securities 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 Playgram with a short position of Samsung Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playgram and Samsung Securities.
Diversification Opportunities for Playgram and Samsung Securities
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playgram and Samsung is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Playgram Co and Samsung Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Securities and Playgram 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 Playgram Co are associated (or correlated) with Samsung Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Securities has no effect on the direction of Playgram i.e., Playgram and Samsung Securities go up and down completely randomly.
Pair Corralation between Playgram and Samsung Securities
Assuming the 90 days trading horizon Playgram Co is expected to under-perform the Samsung Securities. In addition to that, Playgram is 2.9 times more volatile than Samsung Securities. It trades about -0.01 of its total potential returns per unit of risk. Samsung Securities is currently generating about 0.06 per unit of volatility. If you would invest 3,666,615 in Samsung Securities on November 3, 2024 and sell it today you would earn a total of 893,385 from holding Samsung Securities or generate 24.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playgram Co vs. Samsung Securities
Performance |
| Timeline |
| Playgram |
| Samsung Securities |
Playgram and Samsung Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playgram and Samsung Securities
The main advantage of trading using opposite Playgram and Samsung Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playgram position performs unexpectedly, Samsung Securities 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 Securities will offset losses from the drop in Samsung Securities' long position.| Playgram vs. SBI Investment KOREA | Playgram vs. Leaders Technology Investment | Playgram vs. DSC Investment | Playgram vs. Korea Information Engineering |
| Samsung Securities vs. Kukdong Oil Chemicals | Samsung Securities vs. Solus Advanced Materials | Samsung Securities vs. National Plastic Co | Samsung Securities vs. INNOX Advanced Materials |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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