Correlation Between KT Submarine and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both KT Submarine 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 KT Submarine and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Submarine Telecom and Samsung Publishing Co, you can compare the effects of market volatilities on KT Submarine 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 KT Submarine with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Samsung Publishing.
Diversification Opportunities for KT Submarine and Samsung Publishing
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 060370 and Samsung is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and KT Submarine 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 KT Submarine Telecom 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 KT Submarine i.e., KT Submarine and Samsung Publishing go up and down completely randomly.
Pair Corralation between KT Submarine and Samsung Publishing
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 1.52 times more return on investment than Samsung Publishing. However, KT Submarine is 1.52 times more volatile than Samsung Publishing Co. It trades about 0.34 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about 0.07 per unit of risk. If you would invest 1,479,000 in KT Submarine Telecom on October 29, 2024 and sell it today you would earn a total of 273,000 from holding KT Submarine Telecom or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Submarine Telecom vs. Samsung Publishing Co
Performance |
| Timeline |
| KT Submarine Telecom |
| Samsung Publishing |
KT Submarine and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Samsung Publishing
The main advantage of trading using opposite KT Submarine and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine 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.| KT Submarine vs. Kbi Metal Co | KT Submarine vs. Heungkuk Metaltech CoLtd | KT Submarine vs. EBEST Investment Securities | KT Submarine vs. DONGKUK TED METAL |
| Samsung Publishing vs. HB Technology TD | Samsung Publishing vs. Eugene Technology CoLtd | Samsung Publishing vs. Puloon Technology | Samsung Publishing vs. Adaptive Plasma 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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