Correlation Between Samsung Publishing and Sam A
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Sam A 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 Sam A 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 Sam A Pharm Co, you can compare the effects of market volatilities on Samsung Publishing and Sam A 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 Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Sam A.
Diversification Opportunities for Samsung Publishing and Sam A
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Sam is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm 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 Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Sam A go up and down completely randomly.
Pair Corralation between Samsung Publishing and Sam A
Assuming the 90 days trading horizon Samsung Publishing is expected to generate 15.77 times less return on investment than Sam A. In addition to that, Samsung Publishing is 1.49 times more volatile than Sam A Pharm Co. It trades about 0.0 of its total potential returns per unit of risk. Sam A Pharm Co is currently generating about 0.06 per unit of volatility. If you would invest 1,661,478 in Sam A Pharm Co on October 25, 2024 and sell it today you would earn a total of 23,522 from holding Sam A Pharm Co or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Sam A Pharm Co
Performance |
| Timeline |
| Samsung Publishing |
| Sam A Pharm |
Samsung Publishing and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Sam A
The main advantage of trading using opposite Samsung Publishing and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| Samsung Publishing vs. Wireless Power Amplifier | Samsung Publishing vs. Kukdong Oil Chemicals | Samsung Publishing vs. Daishin Information Communications | Samsung Publishing vs. Digital Power Communications |
| Sam A vs. Ewon Comfortech Co | Sam A vs. Aprogen Healthcare Games | Sam A vs. PH Tech Co | Sam A vs. Yura Tech Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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