Correlation Between Samsung Publishing and Sewoon Medical
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Sewoon Medical 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 Sewoon Medical 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 Sewoon Medical Co, you can compare the effects of market volatilities on Samsung Publishing and Sewoon Medical 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 Sewoon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Sewoon Medical.
Diversification Opportunities for Samsung Publishing and Sewoon Medical
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Sewoon is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Sewoon Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sewoon Medical 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 Sewoon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sewoon Medical has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Sewoon Medical go up and down completely randomly.
Pair Corralation between Samsung Publishing and Sewoon Medical
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Sewoon Medical. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Publishing Co is 1.01 times less risky than Sewoon Medical. The stock trades about -0.15 of its potential returns per unit of risk. The Sewoon Medical Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 248,500 in Sewoon Medical Co on November 3, 2024 and sell it today you would lose (4,500) from holding Sewoon Medical Co or give up 1.81% 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. Sewoon Medical Co
Performance |
| Timeline |
| Samsung Publishing |
| Sewoon Medical |
Samsung Publishing and Sewoon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Sewoon Medical
The main advantage of trading using opposite Samsung Publishing and Sewoon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Sewoon Medical 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 Sewoon Medical will offset losses from the drop in Sewoon Medical's long position.| Samsung Publishing vs. NH Investment Securities | Samsung Publishing vs. Stic Investments | Samsung Publishing vs. LB Investment | Samsung Publishing vs. DB Financial Investment |
| Sewoon Medical vs. Nh Investment And | Sewoon Medical vs. Husteel | Sewoon Medical vs. SV Investment | Sewoon Medical vs. Finebesteel |
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 Stocks Directory module to find actively traded stocks across global markets.
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