Correlation Between Histeel and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Histeel and Samsung Publishing 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 Histeel and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histeel and Samsung Publishing Co, you can compare the effects of market volatilities on Histeel and Samsung Publishing 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 Histeel with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histeel and Samsung Publishing.
Diversification Opportunities for Histeel and Samsung Publishing
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Histeel and Samsung is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Histeel and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Histeel 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 Histeel are associated (or correlated) with Samsung Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Publishing has no effect on the direction of Histeel i.e., Histeel and Samsung Publishing go up and down completely randomly.
Pair Corralation between Histeel and Samsung Publishing
Assuming the 90 days trading horizon Histeel is expected to under-perform the Samsung Publishing. In addition to that, Histeel is 1.29 times more volatile than Samsung Publishing Co. It trades about -0.02 of its total potential returns per unit of risk. Samsung Publishing Co is currently generating about 0.0 per unit of volatility. If you would invest 1,405,000 in Samsung Publishing Co on September 3, 2024 and sell it today you would lose (15,000) from holding Samsung Publishing Co or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Histeel vs. Samsung Publishing Co
Performance |
| Timeline |
| Histeel |
| Samsung Publishing |
Histeel and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histeel and Samsung Publishing
The main advantage of trading using opposite Histeel and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histeel position performs unexpectedly, Samsung Publishing 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 Samsung Publishing will offset losses from the drop in Samsung Publishing's long position.| Histeel vs. LG Chemicals | Histeel vs. POSCO Holdings | Histeel vs. Hanwha Solutions | Histeel vs. Lotte Chemical Corp |
| Samsung Publishing vs. Sangsin Energy Display | Samsung Publishing vs. Samsung Life Insurance | Samsung Publishing vs. Dongbang Transport Logistics | Samsung Publishing vs. InfoBank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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