Correlation Between Samsung Publishing and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Kukdong Oil 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 Kukdong Oil 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 Kukdong Oil Chemicals, you can compare the effects of market volatilities on Samsung Publishing and Kukdong Oil 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 Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Kukdong Oil.
Diversification Opportunities for Samsung Publishing and Kukdong Oil
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and Kukdong is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals 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 Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Kukdong Oil go up and down completely randomly.
Pair Corralation between Samsung Publishing and Kukdong Oil
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Kukdong Oil. In addition to that, Samsung Publishing is 3.23 times more volatile than Kukdong Oil Chemicals. It trades about -0.14 of its total potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about -0.23 per unit of volatility. If you would invest 350,000 in Kukdong Oil Chemicals on November 1, 2024 and sell it today you would lose (5,500) from holding Kukdong Oil Chemicals or give up 1.57% 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. Kukdong Oil Chemicals
Performance |
| Timeline |
| Samsung Publishing |
| Kukdong Oil Chemicals |
Samsung Publishing and Kukdong Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Kukdong Oil
The main advantage of trading using opposite Samsung Publishing and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.| Samsung Publishing vs. Lake Materials Co | Samsung Publishing vs. Top Material Co | Samsung Publishing vs. Ssangyong Materials Corp | Samsung Publishing vs. Hana Materials |
| Kukdong Oil vs. Samsung Publishing Co | Kukdong Oil vs. Lotte Non Life Insurance | Kukdong Oil vs. DB Insurance Co | Kukdong Oil vs. Hankuk Steel Wire |
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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