Correlation Between HB Technology and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both HB Technology 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 HB Technology and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HB Technology TD and Samsung Publishing Co, you can compare the effects of market volatilities on HB Technology 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 HB Technology with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Samsung Publishing.
Diversification Opportunities for HB Technology and Samsung Publishing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 078150 and Samsung is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and HB Technology 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 HB Technology TD 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 HB Technology i.e., HB Technology and Samsung Publishing go up and down completely randomly.
Pair Corralation between HB Technology and Samsung Publishing
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.2 times more return on investment than Samsung Publishing. However, HB Technology is 1.2 times more volatile than Samsung Publishing Co. It trades about 0.02 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.02 per unit of risk. If you would invest 195,292 in HB Technology TD on August 28, 2024 and sell it today you would earn a total of 10,208 from holding HB Technology TD or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Samsung Publishing Co
Performance |
| Timeline |
| HB Technology TD |
| Samsung Publishing |
HB Technology and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Samsung Publishing
The main advantage of trading using opposite HB Technology and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology 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.| HB Technology vs. Korea Real Estate | HB Technology vs. Korea Ratings Co | HB Technology vs. IQuest Co | HB Technology vs. Wonbang Tech Co |
| Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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