Correlation Between Samsung Publishing and Adaptive Plasma
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Adaptive Plasma 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 Adaptive Plasma 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 Adaptive Plasma Technology, you can compare the effects of market volatilities on Samsung Publishing and Adaptive Plasma 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 Adaptive Plasma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Adaptive Plasma.
Diversification Opportunities for Samsung Publishing and Adaptive Plasma
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Adaptive is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Adaptive Plasma Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adaptive Plasma Tech 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 Adaptive Plasma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adaptive Plasma Tech has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Adaptive Plasma go up and down completely randomly.
Pair Corralation between Samsung Publishing and Adaptive Plasma
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Adaptive Plasma. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Publishing Co is 2.69 times less risky than Adaptive Plasma. The stock trades about -0.08 of its potential returns per unit of risk. The Adaptive Plasma Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 743,000 in Adaptive Plasma Technology on November 5, 2024 and sell it today you would lose (3,000) from holding Adaptive Plasma Technology or give up 0.4% 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. Adaptive Plasma Technology
Performance |
| Timeline |
| Samsung Publishing |
| Adaptive Plasma Tech |
Samsung Publishing and Adaptive Plasma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Adaptive Plasma
The main advantage of trading using opposite Samsung Publishing and Adaptive Plasma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Adaptive Plasma 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 Adaptive Plasma will offset losses from the drop in Adaptive Plasma's long position.| Samsung Publishing vs. Aprogen Healthcare Games | Samsung Publishing vs. Daou Technology | Samsung Publishing vs. ADTechnology CoLtd | Samsung Publishing vs. Lotte Non Life Insurance |
| Adaptive Plasma vs. KyungIn Electronics Co | Adaptive Plasma vs. Anam Electronics Co | Adaptive Plasma vs. Hanil Chemical Ind | Adaptive Plasma vs. Kg Chemical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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