Correlation Between Samsung Publishing and Asia Technology
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Asia Technology 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 Asia Technology 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 Asia Technology Co, you can compare the effects of market volatilities on Samsung Publishing and Asia Technology 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 Asia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Asia Technology.
Diversification Opportunities for Samsung Publishing and Asia Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Asia is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Asia Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Technology 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 Asia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Technology has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Asia Technology go up and down completely randomly.
Pair Corralation between Samsung Publishing and Asia Technology
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 1.74 times more return on investment than Asia Technology. However, Samsung Publishing is 1.74 times more volatile than Asia Technology Co. It trades about -0.05 of its potential returns per unit of risk. Asia Technology Co is currently generating about -0.25 per unit of risk. If you would invest 1,537,000 in Samsung Publishing Co on November 7, 2024 and sell it today you would lose (24,000) from holding Samsung Publishing Co or give up 1.56% 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. Asia Technology Co
Performance |
| Timeline |
| Samsung Publishing |
| Asia Technology |
Samsung Publishing and Asia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Asia Technology
The main advantage of trading using opposite Samsung Publishing and Asia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Asia Technology 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 Asia Technology will offset losses from the drop in Asia Technology's long position.| Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Jahwa Electron | Samsung Publishing vs. Wonbang Tech Co |
| Asia Technology vs. Miwon Chemicals Co | Asia Technology vs. Automobile Pc | Asia Technology vs. NewFlex Technology Co | Asia Technology vs. Vina Technology 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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