Correlation Between Samji Electronics and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both Samji Electronics and SAMG 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 SAMG 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 SAMG Entertainment Co, you can compare the effects of market volatilities on Samji Electronics and SAMG 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samji Electronics and SAMG Entertainment.
Diversification Opportunities for Samji Electronics and SAMG Entertainment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samji and SAMG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samji Electronics Co and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of Samji Electronics i.e., Samji Electronics and SAMG Entertainment go up and down completely randomly.
Pair Corralation between Samji Electronics and SAMG Entertainment
Assuming the 90 days trading horizon Samji Electronics Co is expected to generate 0.36 times more return on investment than SAMG Entertainment. However, Samji Electronics Co is 2.79 times less risky than SAMG Entertainment. It trades about 0.02 of its potential returns per unit of risk. SAMG Entertainment Co is currently generating about -0.05 per unit of risk. If you would invest 817,770 in Samji Electronics Co on October 14, 2024 and sell it today you would earn a total of 60,230 from holding Samji Electronics Co or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samji Electronics Co vs. SAMG Entertainment Co
Performance |
| Timeline |
| Samji Electronics |
| SAMG Entertainment |
Samji Electronics and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samji Electronics and SAMG Entertainment
The main advantage of trading using opposite Samji Electronics and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samji Electronics position performs unexpectedly, SAMG 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| Samji Electronics vs. SFA Semicon Co | Samji Electronics vs. Seronics Co | Samji Electronics vs. COWELL FASHION CoLtd | Samji Electronics vs. Seohee Construction Co |
| SAMG Entertainment vs. Daishin Information Communications | SAMG Entertainment vs. Samji Electronics Co | SAMG Entertainment vs. SungMoon Electronics Co | SAMG Entertainment vs. ABCO Electronics 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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