Correlation Between Samsung Publishing and Korean Air
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Korean Air 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 Samsung Publishing and Korean Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Publishing Co and Korean Air Lines, you can compare the effects of market volatilities on Samsung Publishing and Korean Air 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 Samsung Publishing with a short position of Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Korean Air.
Diversification Opportunities for Samsung Publishing and Korean Air
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Korean is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines and Samsung Publishing 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 Samsung Publishing Co are associated (or correlated) with Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Korean Air go up and down completely randomly.
Pair Corralation between Samsung Publishing and Korean Air
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 0.88 times more return on investment than Korean Air. However, Samsung Publishing Co is 1.13 times less risky than Korean Air. It trades about 0.02 of its potential returns per unit of risk. Korean Air Lines is currently generating about -0.29 per unit of risk. If you would invest 1,480,000 in Samsung Publishing Co on December 31, 2024 and sell it today you would earn a total of 4,000 from holding Samsung Publishing Co or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Korean Air Lines
Performance |
| Timeline |
| Samsung Publishing |
| Korean Air Lines |
Samsung Publishing and Korean Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Korean Air
The main advantage of trading using opposite Samsung Publishing and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.| Samsung Publishing vs. Next Entertainment World | Samsung Publishing vs. Kaonmedia Co | Samsung Publishing vs. Korea Information Communications | Samsung Publishing vs. TJ media Co |
| Korean Air vs. Youngsin Metal Industrial | Korean Air vs. FOODWELL Co | Korean Air vs. Wing Yip Food | Korean Air vs. Polaris Office Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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