Correlation Between ABOV Semiconductor and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor and SAMG Entertainment 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 ABOV Semiconductor and SAMG Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and SAMG Entertainment Co, you can compare the effects of market volatilities on ABOV Semiconductor and SAMG Entertainment 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 ABOV Semiconductor with a short position of SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and SAMG Entertainment.
Diversification Opportunities for ABOV Semiconductor and SAMG Entertainment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ABOV and SAMG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment and ABOV Semiconductor 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 ABOV Semiconductor Co are associated (or correlated) with SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of ABOV Semiconductor i.e., ABOV Semiconductor and SAMG Entertainment go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and SAMG Entertainment
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to generate 0.85 times more return on investment than SAMG Entertainment. However, ABOV Semiconductor Co is 1.18 times less risky than SAMG Entertainment. It trades about 0.15 of its potential returns per unit of risk. SAMG Entertainment Co is currently generating about 0.12 per unit of risk. If you would invest 795,000 in ABOV Semiconductor Co on October 20, 2024 and sell it today you would earn a total of 58,000 from holding ABOV Semiconductor Co or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. SAMG Entertainment Co
Performance |
| Timeline |
| ABOV Semiconductor |
| SAMG Entertainment |
ABOV Semiconductor and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and SAMG Entertainment
The main advantage of trading using opposite ABOV Semiconductor and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| ABOV Semiconductor vs. Samyang Foods Co | ABOV Semiconductor vs. Haitai Confectionery Foods | ABOV Semiconductor vs. Sam Yang Foods | ABOV Semiconductor vs. BGF Retail Co |
| SAMG Entertainment vs. Seoyon Topmetal Co | SAMG Entertainment vs. Kaonmedia Co | SAMG Entertainment vs. Digital Multimedia Technology | SAMG Entertainment vs. Hankook Furniture 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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