Correlation Between Samsung Publishing and Seah Steel
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Seah Steel 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 Seah Steel 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 Seah Steel Corp, you can compare the effects of market volatilities on Samsung Publishing and Seah Steel 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 Seah Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Seah Steel.
Diversification Opportunities for Samsung Publishing and Seah Steel
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Seah is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Seah Steel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seah Steel Corp 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 Seah Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seah Steel Corp has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Seah Steel go up and down completely randomly.
Pair Corralation between Samsung Publishing and Seah Steel
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 2.55 times more return on investment than Seah Steel. However, Samsung Publishing is 2.55 times more volatile than Seah Steel Corp. It trades about 0.01 of its potential returns per unit of risk. Seah Steel Corp is currently generating about -0.02 per unit of risk. If you would invest 1,473,412 in Samsung Publishing Co on September 3, 2024 and sell it today you would lose (83,412) from holding Samsung Publishing Co or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Publishing Co vs. Seah Steel Corp
Performance |
| Timeline |
| Samsung Publishing |
| Seah Steel Corp |
Samsung Publishing and Seah Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Seah Steel
The main advantage of trading using opposite Samsung Publishing and Seah Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Seah Steel 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 Seah Steel will offset losses from the drop in Seah Steel's long position.| Samsung Publishing vs. Sangsin Energy Display | Samsung Publishing vs. Samsung Life Insurance | Samsung Publishing vs. Dongbang Transport Logistics | Samsung Publishing vs. InfoBank |
| Seah Steel vs. Ni Steel | Seah Steel vs. Korea Steel Co | Seah Steel vs. Bookook Steel | Seah Steel vs. Finebesteel |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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