Correlation Between Samsung Publishing and Coloray International
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Coloray International 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 Coloray International 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 Coloray International Investment, you can compare the effects of market volatilities on Samsung Publishing and Coloray International 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 Coloray International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Coloray International.
Diversification Opportunities for Samsung Publishing and Coloray International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Coloray is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Coloray International Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloray International 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 Coloray International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloray International has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Coloray International go up and down completely randomly.
Pair Corralation between Samsung Publishing and Coloray International
Assuming the 90 days trading horizon Samsung Publishing Co is expected to under-perform the Coloray International. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Publishing Co is 1.23 times less risky than Coloray International. The stock trades about -0.23 of its potential returns per unit of risk. The Coloray International Investment is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 56,900 in Coloray International Investment on October 14, 2024 and sell it today you would earn a total of 12,400 from holding Coloray International Investment or generate 21.79% 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. Coloray International Investme
Performance |
| Timeline |
| Samsung Publishing |
| Coloray International |
Samsung Publishing and Coloray International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Publishing and Coloray International
The main advantage of trading using opposite Samsung Publishing and Coloray International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Coloray International 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 Coloray International will offset losses from the drop in Coloray International's long position.| Samsung Publishing vs. Lotte Non Life Insurance | Samsung Publishing vs. Korea Alcohol Industrial | Samsung Publishing vs. Sam Yang Foods | Samsung Publishing vs. Sungmoon Electronics Co |
| Coloray International vs. Korea Information Engineering | Coloray International vs. Daou Data Corp | Coloray International vs. Samsung Publishing Co | Coloray International vs. Samlip General Foods |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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