Correlation Between Samsung Publishing and Humax Holdings
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Humax Holdings 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 Humax Holdings 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 Humax Holdings Co, you can compare the effects of market volatilities on Samsung Publishing and Humax Holdings 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 Humax Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Humax Holdings.
Diversification Opportunities for Samsung Publishing and Humax Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Humax is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Humax Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humax Holdings 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 Humax Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humax Holdings has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Humax Holdings go up and down completely randomly.
Pair Corralation between Samsung Publishing and Humax Holdings
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 0.74 times more return on investment than Humax Holdings. However, Samsung Publishing Co is 1.35 times less risky than Humax Holdings. It trades about -0.01 of its potential returns per unit of risk. Humax Holdings Co is currently generating about -0.01 per unit of risk. If you would invest 2,376,347 in Samsung Publishing Co on September 14, 2024 and sell it today you would lose (792,347) from holding Samsung Publishing Co or give up 33.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Humax Holdings Co
Performance |
| Timeline |
| Samsung Publishing |
| Humax Holdings |
Samsung Publishing and Humax Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Humax Holdings
The main advantage of trading using opposite Samsung Publishing and Humax Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Humax Holdings 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 Humax Holdings will offset losses from the drop in Humax Holdings' long position.| Samsung Publishing vs. Samsung Electronics Co | Samsung Publishing vs. Samsung Electronics Co | Samsung Publishing vs. SK Hynix | Samsung Publishing vs. POSCO Holdings |
| Humax Holdings vs. Seoul Food Industrial | Humax Holdings vs. ABCO Electronics Co | Humax Holdings vs. Lotte Chilsung Beverage | Humax Holdings vs. CKH Food Health |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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