Correlation Between Samsung Publishing and Microfriend
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Microfriend 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 Microfriend 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 Microfriend, you can compare the effects of market volatilities on Samsung Publishing and Microfriend 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 Microfriend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Microfriend.
Diversification Opportunities for Samsung Publishing and Microfriend
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Microfriend is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Microfriend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microfriend 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 Microfriend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microfriend has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Microfriend go up and down completely randomly.
Pair Corralation between Samsung Publishing and Microfriend
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Microfriend. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Publishing Co is 1.08 times less risky than Microfriend. The stock trades about -0.01 of its potential returns per unit of risk. The Microfriend is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 512,000 in Microfriend on October 13, 2024 and sell it today you would lose (206,000) from holding Microfriend or give up 40.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Samsung Publishing Co vs. Microfriend
Performance |
| Timeline |
| Samsung Publishing |
| Microfriend |
Samsung Publishing and Microfriend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Microfriend
The main advantage of trading using opposite Samsung Publishing and Microfriend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Microfriend 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 Microfriend will offset losses from the drop in Microfriend's long position.| Samsung Publishing vs. Haitai Confectionery Foods | Samsung Publishing vs. Daejung Chemicals Metals | Samsung Publishing vs. Kukil Metal Co | Samsung Publishing vs. Daewon Chemical Co |
| Microfriend vs. Samsung Publishing Co | Microfriend vs. InfoBank | Microfriend vs. BGF Retail Co | Microfriend vs. Osang Healthcare Co,Ltd |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |