Correlation Between Pan Entertainment and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Pan Entertainment 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 Pan Entertainment and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan Entertainment Co and Samsung Publishing Co, you can compare the effects of market volatilities on Pan Entertainment 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 Pan Entertainment with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Entertainment and Samsung Publishing.
Diversification Opportunities for Pan Entertainment and Samsung Publishing
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pan and Samsung is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pan Entertainment 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 Pan Entertainment 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 Pan Entertainment 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 Pan Entertainment i.e., Pan Entertainment and Samsung Publishing go up and down completely randomly.
Pair Corralation between Pan Entertainment and Samsung Publishing
Assuming the 90 days trading horizon Pan Entertainment Co is expected to generate 0.51 times more return on investment than Samsung Publishing. However, Pan Entertainment Co is 1.97 times less risky than Samsung Publishing. It trades about 0.16 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.01 per unit of risk. If you would invest 212,000 in Pan Entertainment Co on September 1, 2024 and sell it today you would earn a total of 12,000 from holding Pan Entertainment Co or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan Entertainment Co vs. Samsung Publishing Co
Performance |
| Timeline |
| Pan Entertainment |
| Samsung Publishing |
Pan Entertainment and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Entertainment and Samsung Publishing
The main advantage of trading using opposite Pan Entertainment and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Entertainment 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.| Pan Entertainment vs. AfreecaTV Co | Pan Entertainment vs. Seegene | Pan Entertainment vs. SS TECH | Pan Entertainment vs. Busan Industrial Co |
| Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |