Correlation Between Samsung Publishing and Green Cross
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Green Cross 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 Green Cross 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 Green Cross Medical, you can compare the effects of market volatilities on Samsung Publishing and Green Cross 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 Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Green Cross.
Diversification Opportunities for Samsung Publishing and Green Cross
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Green is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross 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 Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Green Cross go up and down completely randomly.
Pair Corralation between Samsung Publishing and Green Cross
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Green Cross. In addition to that, Samsung Publishing is 1.05 times more volatile than Green Cross Medical. It trades about -0.02 of its total potential returns per unit of risk. Green Cross Medical is currently generating about -0.02 per unit of volatility. If you would invest 586,000 in Green Cross Medical on September 3, 2024 and sell it today you would lose (220,000) from holding Green Cross Medical or give up 37.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Green Cross Medical
Performance |
| Timeline |
| Samsung Publishing |
| Green Cross Medical |
Samsung Publishing and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Green Cross
The main advantage of trading using opposite Samsung Publishing and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| Samsung Publishing vs. Sangsin Energy Display | Samsung Publishing vs. Samsung Life Insurance | Samsung Publishing vs. Dongbang Transport Logistics | Samsung Publishing vs. InfoBank |
| Green Cross vs. Samsung Card Co | Green Cross vs. EBEST Investment Securities | Green Cross vs. Koh Young Technology | Green Cross vs. Hansol Chemica |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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