Correlation Between JYP Entertainment and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both JYP Entertainment 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 JYP Entertainment and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JYP Entertainment Corp and Samsung Publishing Co, you can compare the effects of market volatilities on JYP Entertainment 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 JYP Entertainment with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of JYP Entertainment and Samsung Publishing.
Diversification Opportunities for JYP Entertainment and Samsung Publishing
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JYP and Samsung is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JYP Entertainment Corp and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and JYP Entertainment 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 JYP Entertainment Corp 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 JYP Entertainment i.e., JYP Entertainment and Samsung Publishing go up and down completely randomly.
Pair Corralation between JYP Entertainment and Samsung Publishing
Assuming the 90 days trading horizon JYP Entertainment Corp is expected to generate 1.08 times more return on investment than Samsung Publishing. However, JYP Entertainment is 1.08 times more volatile than Samsung Publishing Co. It trades about 0.43 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about 0.05 per unit of risk. If you would invest 5,080,000 in JYP Entertainment Corp on August 29, 2024 and sell it today you would earn a total of 1,900,000 from holding JYP Entertainment Corp or generate 37.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JYP Entertainment Corp vs. Samsung Publishing Co
Performance |
| Timeline |
| JYP Entertainment Corp |
| Samsung Publishing |
JYP Entertainment and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JYP Entertainment and Samsung Publishing
The main advantage of trading using opposite JYP Entertainment and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JYP Entertainment 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.| JYP Entertainment vs. Samsung Electronics Co | JYP Entertainment vs. Samsung Electronics Co | JYP Entertainment vs. LG Energy Solution | JYP Entertainment vs. SK Hynix |
| Samsung Publishing vs. Pan Entertainment Co | Samsung Publishing vs. Digital Multimedia Technology | Samsung Publishing vs. JYP Entertainment Corp | Samsung Publishing vs. SKONEC Entertainment 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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