Correlation Between Samsung Publishing and Jeju Air
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Jeju Air 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 Jeju Air 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 Jeju Air Co, you can compare the effects of market volatilities on Samsung Publishing and Jeju Air 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 Jeju Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Jeju Air.
Diversification Opportunities for Samsung Publishing and Jeju Air
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Jeju is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Jeju Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Air 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 Jeju Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Air has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Jeju Air go up and down completely randomly.
Pair Corralation between Samsung Publishing and Jeju Air
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 1.19 times more return on investment than Jeju Air. However, Samsung Publishing is 1.19 times more volatile than Jeju Air Co. It trades about 0.06 of its potential returns per unit of risk. Jeju Air Co is currently generating about -0.11 per unit of risk. If you would invest 1,396,209 in Samsung Publishing Co on October 27, 2024 and sell it today you would earn a total of 117,791 from holding Samsung Publishing Co or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Jeju Air Co
Performance |
| Timeline |
| Samsung Publishing |
| Jeju Air |
Samsung Publishing and Jeju Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Jeju Air
The main advantage of trading using opposite Samsung Publishing and Jeju Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Jeju Air 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 Jeju Air will offset losses from the drop in Jeju Air's long position.| Samsung Publishing vs. GS Retail Co | Samsung Publishing vs. Ssangyong Information Communication | Samsung Publishing vs. Sam Yang Foods | Samsung Publishing vs. Wireless Power Amplifier |
| Jeju Air vs. Samsung Electronics Co | Jeju Air vs. Samsung Electronics Co | Jeju Air vs. KB Financial Group | Jeju Air vs. Shinhan Financial Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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