Correlation Between Wonbang Tech and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech 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 Wonbang Tech and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and Samsung Publishing Co, you can compare the effects of market volatilities on Wonbang Tech 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 Wonbang Tech with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Samsung Publishing.
Diversification Opportunities for Wonbang Tech and Samsung Publishing
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wonbang and Samsung is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Wonbang Tech 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 Wonbang Tech Co 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 Wonbang Tech i.e., Wonbang Tech and Samsung Publishing go up and down completely randomly.
Pair Corralation between Wonbang Tech and Samsung Publishing
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 2.2 times more return on investment than Samsung Publishing. However, Wonbang Tech is 2.2 times more volatile than Samsung Publishing Co. It trades about 0.07 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.17 per unit of risk. If you would invest 1,291,000 in Wonbang Tech Co on November 4, 2024 and sell it today you would earn a total of 34,000 from holding Wonbang Tech Co or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Samsung Publishing Co
Performance |
| Timeline |
| Wonbang Tech |
| Samsung Publishing |
Wonbang Tech and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Samsung Publishing
The main advantage of trading using opposite Wonbang Tech and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech 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.| Wonbang Tech vs. SBI Investment KOREA | Wonbang Tech vs. Daiyang Metal Co | Wonbang Tech vs. DB Financial Investment | Wonbang Tech vs. Atinum Investment Co |
| Samsung Publishing vs. ADTechnology CoLtd | Samsung Publishing vs. Narae Nanotech Corp | Samsung Publishing vs. PH Tech Co | Samsung Publishing vs. Puloon Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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