Correlation Between Samsung Publishing and JYP Entertainment
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and JYP Entertainment 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 JYP Entertainment 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 JYP Entertainment Corp, you can compare the effects of market volatilities on Samsung Publishing and JYP Entertainment 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 JYP Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and JYP Entertainment.
Diversification Opportunities for Samsung Publishing and JYP Entertainment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and JYP is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and JYP Entertainment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JYP Entertainment Corp 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 JYP Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JYP Entertainment Corp has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and JYP Entertainment go up and down completely randomly.
Pair Corralation between Samsung Publishing and JYP Entertainment
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the JYP Entertainment. In addition to that, Samsung Publishing is 1.01 times more volatile than JYP Entertainment Corp. It trades about -0.07 of its total potential returns per unit of risk. JYP Entertainment Corp is currently generating about 0.01 per unit of volatility. If you would invest 7,480,000 in JYP Entertainment Corp on November 2, 2024 and sell it today you would earn a total of 20,000 from holding JYP Entertainment Corp or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. JYP Entertainment Corp
Performance |
| Timeline |
| Samsung Publishing |
| JYP Entertainment Corp |
Samsung Publishing and JYP Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and JYP Entertainment
The main advantage of trading using opposite Samsung Publishing and JYP Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, JYP Entertainment 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 JYP Entertainment will offset losses from the drop in JYP Entertainment's long position.| Samsung Publishing vs. Cuckoo Electronics Co | Samsung Publishing vs. DAEDUCK ELECTRONICS CoLtd | Samsung Publishing vs. Iljin Display | Samsung Publishing vs. Playgram Co |
| JYP Entertainment vs. ADTechnology CoLtd | JYP Entertainment vs. Dong A Steel Technology | JYP Entertainment vs. iNtRON Biotechnology | JYP Entertainment vs. Nice Information Telecommunication |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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