Correlation Between Insung Information and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Insung 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 Insung 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 Insung Information Co and Samsung Publishing Co, you can compare the effects of market volatilities on Insung 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 Insung Information with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insung Information and Samsung Publishing.
Diversification Opportunities for Insung Information and Samsung Publishing
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Insung and Samsung is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Insung Information 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 Insung 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 Insung Information 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 Insung Information i.e., Insung Information and Samsung Publishing go up and down completely randomly.
Pair Corralation between Insung Information and Samsung Publishing
Assuming the 90 days trading horizon Insung Information Co is expected to generate 1.27 times more return on investment than Samsung Publishing. However, Insung Information is 1.27 times more volatile than Samsung Publishing Co. It trades about 0.13 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 178,700 in Insung Information Co on October 29, 2024 and sell it today you would earn a total of 9,600 from holding Insung Information Co or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insung Information Co vs. Samsung Publishing Co
Performance |
| Timeline |
| Insung Information |
| Samsung Publishing |
Insung Information and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insung Information and Samsung Publishing
The main advantage of trading using opposite Insung Information and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insung 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.| Insung Information vs. Namhae Chemical | Insung Information vs. N2Tech Co | Insung Information vs. Wireless Power Amplifier | Insung Information vs. iNtRON Biotechnology |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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