Correlation Between Samsung Publishing and Busan Ind
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Busan Ind 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 Busan Ind 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 Busan Ind, you can compare the effects of market volatilities on Samsung Publishing and Busan Ind 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 Busan Ind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Busan Ind.
Diversification Opportunities for Samsung Publishing and Busan Ind
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Busan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Busan Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Busan Ind 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 Busan Ind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Busan Ind has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Busan Ind go up and down completely randomly.
Pair Corralation between Samsung Publishing and Busan Ind
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Busan Ind. In addition to that, Samsung Publishing is 1.12 times more volatile than Busan Ind. It trades about -0.01 of its total potential returns per unit of risk. Busan Ind is currently generating about 0.02 per unit of volatility. If you would invest 7,609,537 in Busan Ind on October 12, 2024 and sell it today you would earn a total of 80,463 from holding Busan Ind or generate 1.06% 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. Busan Ind
Performance |
| Timeline |
| Samsung Publishing |
| Busan Ind |
Samsung Publishing and Busan Ind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Busan Ind
The main advantage of trading using opposite Samsung Publishing and Busan Ind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Busan Ind 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 Busan Ind will offset losses from the drop in Busan Ind's long position.| Samsung Publishing vs. KG Eco Technology | Samsung Publishing vs. NewFlex Technology Co | Samsung Publishing vs. Jinro Distillers Co | Samsung Publishing vs. Hanjin Transportation Co |
| Busan Ind vs. Daiyang Metal Co | Busan Ind vs. Sam Yang Foods | Busan Ind vs. Samsung Publishing Co | Busan Ind vs. Duksan Hi Metal |
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.
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