Correlation Between Samsung Publishing and TSE
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and TSE 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 TSE 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 TSE Co, you can compare the effects of market volatilities on Samsung Publishing and TSE 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 TSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and TSE.
Diversification Opportunities for Samsung Publishing and TSE
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and TSE is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and TSE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSE Co 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 TSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSE Co has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and TSE go up and down completely randomly.
Pair Corralation between Samsung Publishing and TSE
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the TSE. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Publishing Co is 2.36 times less risky than TSE. The stock trades about -0.15 of its potential returns per unit of risk. The TSE Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,130,000 in TSE Co on November 3, 2024 and sell it today you would earn a total of 190,000 from holding TSE Co or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. TSE Co
Performance |
| Timeline |
| Samsung Publishing |
| TSE Co |
Samsung Publishing and TSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and TSE
The main advantage of trading using opposite Samsung Publishing and TSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, TSE 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 TSE will offset losses from the drop in TSE'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 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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