Correlation Between SAMRYOONG CoLtd and Daewon Media
Can any of the company-specific risk be diversified away by investing in both SAMRYOONG CoLtd and Daewon Media 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 SAMRYOONG CoLtd and Daewon Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMRYOONG CoLtd and Daewon Media Co, you can compare the effects of market volatilities on SAMRYOONG CoLtd and Daewon Media 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 SAMRYOONG CoLtd with a short position of Daewon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMRYOONG CoLtd and Daewon Media.
Diversification Opportunities for SAMRYOONG CoLtd and Daewon Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAMRYOONG and Daewon is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SAMRYOONG CoLtd and Daewon Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewon Media and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd are associated (or correlated) with Daewon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewon Media has no effect on the direction of SAMRYOONG CoLtd i.e., SAMRYOONG CoLtd and Daewon Media go up and down completely randomly.
Pair Corralation between SAMRYOONG CoLtd and Daewon Media
Assuming the 90 days trading horizon SAMRYOONG CoLtd is expected to under-perform the Daewon Media. In addition to that, SAMRYOONG CoLtd is 1.09 times more volatile than Daewon Media Co. It trades about -0.31 of its total potential returns per unit of risk. Daewon Media Co is currently generating about -0.2 per unit of volatility. If you would invest 804,000 in Daewon Media Co on August 29, 2024 and sell it today you would lose (44,000) from holding Daewon Media Co or give up 5.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMRYOONG CoLtd vs. Daewon Media Co
Performance |
| Timeline |
| SAMRYOONG CoLtd |
| Daewon Media |
SAMRYOONG CoLtd and Daewon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMRYOONG CoLtd and Daewon Media
The main advantage of trading using opposite SAMRYOONG CoLtd and Daewon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMRYOONG CoLtd position performs unexpectedly, Daewon Media 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 Daewon Media will offset losses from the drop in Daewon Media's long position.| SAMRYOONG CoLtd vs. Daewon Media Co | SAMRYOONG CoLtd vs. Polaris Office Corp | SAMRYOONG CoLtd vs. KIWI Media Group | SAMRYOONG CoLtd vs. Pan Entertainment Co |
| Daewon Media vs. HJ ShipBuilding Construction | Daewon Media vs. Golden Bridge Investment | Daewon Media vs. Daewoo Engineering Construction | Daewon Media vs. Korea Investment Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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