Correlation Between NICE Information and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both NICE Information 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 NICE Information and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Samsung Publishing Co, you can compare the effects of market volatilities on NICE Information 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 NICE Information with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Samsung Publishing.
Diversification Opportunities for NICE Information and Samsung Publishing
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NICE and Samsung is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and NICE Information 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 NICE Information Service 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 NICE Information i.e., NICE Information and Samsung Publishing go up and down completely randomly.
Pair Corralation between NICE Information and Samsung Publishing
Assuming the 90 days trading horizon NICE Information Service is expected to generate 1.03 times more return on investment than Samsung Publishing. However, NICE Information is 1.03 times more volatile than Samsung Publishing Co. It trades about 0.1 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about 0.07 per unit of risk. If you would invest 1,218,000 in NICE Information Service on October 29, 2024 and sell it today you would earn a total of 42,000 from holding NICE Information Service or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Samsung Publishing Co
Performance |
| Timeline |
| NICE Information Service |
| Samsung Publishing |
NICE Information and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Samsung Publishing
The main advantage of trading using opposite NICE Information and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information 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.| NICE Information vs. Stic Investments | NICE Information vs. Samyung Trading Co | NICE Information vs. Daelim Trading Co | NICE Information vs. Korea Air Svc |
| Samsung Publishing vs. HB Technology TD | Samsung Publishing vs. Eugene Technology CoLtd | Samsung Publishing vs. Puloon Technology | Samsung Publishing vs. Adaptive Plasma Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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