Correlation Between Taegu Broadcasting and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Taegu Broadcasting 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 Taegu Broadcasting and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taegu Broadcasting and Samsung Publishing Co, you can compare the effects of market volatilities on Taegu Broadcasting 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 Taegu Broadcasting with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taegu Broadcasting and Samsung Publishing.
Diversification Opportunities for Taegu Broadcasting and Samsung Publishing
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Taegu and Samsung is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Taegu Broadcasting and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting i.e., Taegu Broadcasting and Samsung Publishing go up and down completely randomly.
Pair Corralation between Taegu Broadcasting and Samsung Publishing
Assuming the 90 days trading horizon Taegu Broadcasting is expected to generate 0.47 times more return on investment than Samsung Publishing. However, Taegu Broadcasting is 2.12 times less risky than Samsung Publishing. It trades about -0.02 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.02 per unit of risk. If you would invest 108,545 in Taegu Broadcasting on October 30, 2024 and sell it today you would lose (23,845) from holding Taegu Broadcasting or give up 21.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taegu Broadcasting vs. Samsung Publishing Co
Performance |
| Timeline |
| Taegu Broadcasting |
| Samsung Publishing |
Taegu Broadcasting and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taegu Broadcasting and Samsung Publishing
The main advantage of trading using opposite Taegu Broadcasting and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taegu Broadcasting 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.| Taegu Broadcasting vs. Busan Industrial Co | Taegu Broadcasting vs. Busan Ind | Taegu Broadcasting vs. RPBio Inc | Taegu Broadcasting vs. Finebesteel |
| Samsung Publishing vs. LG Household Healthcare | Samsung Publishing vs. Clean Science co | Samsung Publishing vs. Mgame Corp | Samsung Publishing vs. Hotel Shilla 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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