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 Telecommunication 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
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nice and Samsung is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica 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 Telecommunication 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 Telecommunication is expected to under-perform the Samsung Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Nice Information Telecommunication is 2.43 times less risky than Samsung Publishing. The stock trades about -0.25 of its potential returns per unit of risk. The Samsung Publishing Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,553,097 in Samsung Publishing Co on October 20, 2024 and sell it today you would earn a total of 3,903 from holding Samsung Publishing Co or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. Samsung Publishing Co
Performance |
| Timeline |
| Nice Information Tel |
| 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. Soulbrain Holdings Co | Nice Information vs. NICE Total Cash | Nice Information vs. Geumhwa Plant Service | Nice Information vs. AfreecaTV Co |
| Samsung Publishing vs. Inzi Display CoLtd | Samsung Publishing vs. Miwon Chemical | Samsung Publishing vs. Nice Information Telecommunication | Samsung Publishing vs. Kyung In Synthetic Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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