Correlation Between Samsung Publishing and ATON
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and ATON 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 ATON 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 ATON Inc, you can compare the effects of market volatilities on Samsung Publishing and ATON 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 ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and ATON.
Diversification Opportunities for Samsung Publishing and ATON
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and ATON is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc 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 ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and ATON go up and down completely randomly.
Pair Corralation between Samsung Publishing and ATON
Assuming the 90 days trading horizon Samsung Publishing is expected to generate 4.94 times less return on investment than ATON. But when comparing it to its historical volatility, Samsung Publishing Co is 2.27 times less risky than ATON. It trades about 0.11 of its potential returns per unit of risk. ATON Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 398,000 in ATON Inc on September 13, 2024 and sell it today you would earn a total of 182,000 from holding ATON Inc or generate 45.73% 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. ATON Inc
Performance |
| Timeline |
| Samsung Publishing |
| ATON Inc |
Samsung Publishing and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and ATON
The main advantage of trading using opposite Samsung Publishing and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| Samsung Publishing vs. Samsung Electronics Co | Samsung Publishing vs. Samsung Electronics Co | Samsung Publishing vs. SK Hynix | Samsung Publishing vs. POSCO Holdings |
| ATON vs. Solution Advanced Technology | ATON vs. Nam Hwa Construction | ATON vs. Kyeryong Construction Industrial | ATON vs. Shinsegae Engineering Construction |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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