Correlation Between Samsung Publishing and PJ Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and PJ Electronics 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 PJ Electronics 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 PJ Electronics Co, you can compare the effects of market volatilities on Samsung Publishing and PJ Electronics 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 PJ Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and PJ Electronics.
Diversification Opportunities for Samsung Publishing and PJ Electronics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and 006140 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and PJ Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Electronics 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 PJ Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Electronics has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and PJ Electronics go up and down completely randomly.
Pair Corralation between Samsung Publishing and PJ Electronics
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the PJ Electronics. In addition to that, Samsung Publishing is 1.34 times more volatile than PJ Electronics Co. It trades about -0.02 of its total potential returns per unit of risk. PJ Electronics Co is currently generating about -0.02 per unit of volatility. If you would invest 801,225 in PJ Electronics Co on October 27, 2024 and sell it today you would lose (276,225) from holding PJ Electronics Co or give up 34.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. PJ Electronics Co
Performance |
| Timeline |
| Samsung Publishing |
| PJ Electronics |
Samsung Publishing and PJ Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and PJ Electronics
The main advantage of trading using opposite Samsung Publishing and PJ Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, PJ Electronics 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 PJ Electronics will offset losses from the drop in PJ Electronics' long position.| Samsung Publishing vs. GS Retail Co | Samsung Publishing vs. Ssangyong Information Communication | Samsung Publishing vs. Sam Yang Foods | Samsung Publishing vs. Wireless Power Amplifier |
| PJ Electronics vs. Lotte Data Communication | PJ Electronics vs. SCI Information Service | PJ Electronics vs. InnoTherapy | PJ Electronics vs. Ecoplastic |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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