Correlation Between Samji Electronics and Pan Entertainment
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and Pan Entertainment 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 Samji Electronics and Pan Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samji Electronics Co and Pan Entertainment Co, you can compare the effects of market volatilities on Samji Electronics and Pan Entertainment 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 Samji Electronics with a short position of Pan Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and Pan Entertainment.
Diversification Opportunities for Samji Electronics and Pan Entertainment
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samji and Pan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and Pan Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Entertainment and Samji Electronics 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 Samji Electronics Co are associated (or correlated) with Pan Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Entertainment has no effect on the direction of Samji Electronics i.e., Samji Electronics and Pan Entertainment go up and down completely randomly.
Pair Corralation between Samji Electronics and Pan Entertainment
Assuming the 90 days trading horizon Samji Electronics Co is expected to under-perform the Pan Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Samji Electronics Co is 2.33 times less risky than Pan Entertainment. The stock trades about -0.22 of its potential returns per unit of risk. The Pan Entertainment Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 207,500 in Pan Entertainment Co on September 12, 2024 and sell it today you would lose (8,500) from holding Pan Entertainment Co or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. Pan Entertainment Co
Performance |
| Timeline |
| Samji Electronics |
| Pan Entertainment |
Samji Electronics and Pan Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and Pan Entertainment
The main advantage of trading using opposite Samji Electronics and Pan Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, Pan Entertainment 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 Pan Entertainment will offset losses from the drop in Pan Entertainment's long position.| Samji Electronics vs. Cube Entertainment | Samji Electronics vs. Dreamus Company | Samji Electronics vs. LG Energy Solution | Samji Electronics vs. Dongwon System |
| Pan Entertainment vs. YG Entertainment | Pan Entertainment vs. JYP Entertainment | Pan Entertainment vs. Cube Entertainment | Pan Entertainment vs. FNC 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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