Correlation Between Samsung Publishing and Digital Power
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Digital Power 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 Digital Power 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 Digital Power Communications, you can compare the effects of market volatilities on Samsung Publishing and Digital Power 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 Digital Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Digital Power.
Diversification Opportunities for Samsung Publishing and Digital Power
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Digital is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Digital Power Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Power Commun 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 Digital Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Power Commun has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Digital Power go up and down completely randomly.
Pair Corralation between Samsung Publishing and Digital Power
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 1.65 times more return on investment than Digital Power. However, Samsung Publishing is 1.65 times more volatile than Digital Power Communications. It trades about 0.13 of its potential returns per unit of risk. Digital Power Communications is currently generating about 0.17 per unit of risk. If you would invest 1,369,000 in Samsung Publishing Co on September 12, 2024 and sell it today you would earn a total of 141,000 from holding Samsung Publishing Co or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Digital Power Communications
Performance |
| Timeline |
| Samsung Publishing |
| Digital Power Commun |
Samsung Publishing and Digital Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Digital Power
The main advantage of trading using opposite Samsung Publishing and Digital Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Digital Power 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 Digital Power will offset losses from the drop in Digital Power's long position.| Samsung Publishing vs. Samsung Electronics Co | Samsung Publishing vs. Samsung Electronics Co | Samsung Publishing vs. SK Hynix | Samsung Publishing vs. POSCO Holdings |
| Digital Power vs. Dongwon Metal Co | Digital Power vs. Samsung Publishing Co | Digital Power vs. Miwon Chemicals Co | Digital Power vs. PJ Metal 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |