Correlation Between Tamul Multimedia and Samsung Special
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and Samsung Special 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 Tamul Multimedia and Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamul Multimedia Co and Samsung Special Purpose, you can compare the effects of market volatilities on Tamul Multimedia and Samsung Special 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 Tamul Multimedia with a short position of Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and Samsung Special.
Diversification Opportunities for Tamul Multimedia and Samsung Special
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tamul and Samsung is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose and Tamul Multimedia 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 Tamul Multimedia Co are associated (or correlated) with Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and Samsung Special go up and down completely randomly.
Pair Corralation between Tamul Multimedia and Samsung Special
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to generate 0.89 times more return on investment than Samsung Special. However, Tamul Multimedia Co is 1.12 times less risky than Samsung Special. It trades about 0.01 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about -0.02 per unit of risk. If you would invest 493,000 in Tamul Multimedia Co on September 14, 2024 and sell it today you would lose (84,000) from holding Tamul Multimedia Co or give up 17.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. Samsung Special Purpose
Performance |
| Timeline |
| Tamul Multimedia |
| Samsung Special Purpose |
Tamul Multimedia and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and Samsung Special
The main advantage of trading using opposite Tamul Multimedia and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, Samsung Special 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 Special will offset losses from the drop in Samsung Special's long position.| Tamul Multimedia vs. SK Hynix | Tamul Multimedia vs. People Technology | Tamul Multimedia vs. Hana Materials | Tamul Multimedia vs. SIMMTECH Co |
| Samsung Special vs. CU Tech Corp | Samsung Special vs. Tamul Multimedia Co | Samsung Special vs. Lion Chemtech Co | Samsung Special vs. ABOV Semiconductor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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