Correlation Between Samsung Publishing and A Tech
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and A Tech 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 A Tech 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 A Tech Solution Co, you can compare the effects of market volatilities on Samsung Publishing and A Tech 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 A Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and A Tech.
Diversification Opportunities for Samsung Publishing and A Tech
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and 071670 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and A Tech Solution Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Tech Solution 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 A Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Tech Solution has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and A Tech go up and down completely randomly.
Pair Corralation between Samsung Publishing and A Tech
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the A Tech. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Publishing Co is 1.49 times less risky than A Tech. The stock trades about -0.19 of its potential returns per unit of risk. The A Tech Solution Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 550,000 in A Tech Solution Co on October 17, 2024 and sell it today you would earn a total of 62,000 from holding A Tech Solution Co or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. A Tech Solution Co
Performance |
| Timeline |
| Samsung Publishing |
| A Tech Solution |
Samsung Publishing and A Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and A Tech
The main advantage of trading using opposite Samsung Publishing and A Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, A Tech 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 A Tech will offset losses from the drop in A Tech's long position.| Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
| A Tech vs. Shinhan Inverse Silver | A Tech vs. Dongkuk Structures Construction | A Tech vs. Seoam Machinery Industry | A Tech vs. Samsung Publishing 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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