Correlation Between Samsung Publishing and Hana Technology
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Hana Technology 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 Hana Technology 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 Hana Technology Co, you can compare the effects of market volatilities on Samsung Publishing and Hana Technology 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 Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Hana Technology.
Diversification Opportunities for Samsung Publishing and Hana Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Hana is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology 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 Hana Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Technology has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Hana Technology go up and down completely randomly.
Pair Corralation between Samsung Publishing and Hana Technology
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 0.89 times more return on investment than Hana Technology. However, Samsung Publishing Co is 1.13 times less risky than Hana Technology. It trades about -0.02 of its potential returns per unit of risk. Hana Technology Co is currently generating about -0.03 per unit of risk. If you would invest 2,445,784 in Samsung Publishing Co on August 28, 2024 and sell it today you would lose (1,006,784) from holding Samsung Publishing Co or give up 41.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Hana Technology Co
Performance |
| Timeline |
| Samsung Publishing |
| Hana Technology |
Samsung Publishing and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Hana Technology
The main advantage of trading using opposite Samsung Publishing and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Hana Technology 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 Hana Technology will offset losses from the drop in Hana Technology's long position.| Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
| Hana Technology vs. Rainbow Robotics | Hana Technology vs. CS BEARING CoLtd | Hana Technology vs. HS Valve Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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