Correlation Between Samsung Card and Prestige Biologics
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Prestige Biologics 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 Samsung Card and Prestige Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and Prestige Biologics Co, you can compare the effects of market volatilities on Samsung Card and Prestige Biologics 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 Samsung Card with a short position of Prestige Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Prestige Biologics.
Diversification Opportunities for Samsung Card and Prestige Biologics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Prestige is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Prestige Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prestige Biologics and Samsung Card 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 Samsung Card Co are associated (or correlated) with Prestige Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prestige Biologics has no effect on the direction of Samsung Card i.e., Samsung Card and Prestige Biologics go up and down completely randomly.
Pair Corralation between Samsung Card and Prestige Biologics
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.49 times more return on investment than Prestige Biologics. However, Samsung Card Co is 2.05 times less risky than Prestige Biologics. It trades about 0.18 of its potential returns per unit of risk. Prestige Biologics Co is currently generating about -0.33 per unit of risk. If you would invest 4,040,000 in Samsung Card Co on September 1, 2024 and sell it today you would earn a total of 230,000 from holding Samsung Card Co or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Card Co vs. Prestige Biologics Co
Performance |
| Timeline |
| Samsung Card |
| Prestige Biologics |
Samsung Card and Prestige Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Prestige Biologics
The main advantage of trading using opposite Samsung Card and Prestige Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Prestige Biologics 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 Prestige Biologics will offset losses from the drop in Prestige Biologics' long position.| Samsung Card vs. Gyeongnam Steel Co | Samsung Card vs. Playgram Co | Samsung Card vs. Hyundai Home Shopping | Samsung Card vs. Home Center Holdings |
| Prestige Biologics vs. Sungchang Autotech Co | Prestige Biologics vs. Woori Technology | Prestige Biologics vs. Jeju Air Co | Prestige Biologics vs. Jeju Beer 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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