Correlation Between Itcen and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Itcen 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 Itcen and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itcen Co and Samsung Publishing Co, you can compare the effects of market volatilities on Itcen 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 Itcen with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itcen and Samsung Publishing.
Diversification Opportunities for Itcen and Samsung Publishing
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Itcen and Samsung is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Itcen Co and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Itcen 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 Itcen Co 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 Itcen i.e., Itcen and Samsung Publishing go up and down completely randomly.
Pair Corralation between Itcen and Samsung Publishing
Assuming the 90 days trading horizon Itcen Co is expected to generate 2.06 times more return on investment than Samsung Publishing. However, Itcen is 2.06 times more volatile than Samsung Publishing Co. It trades about -0.09 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.23 per unit of risk. If you would invest 579,000 in Itcen Co on October 14, 2024 and sell it today you would lose (43,000) from holding Itcen Co or give up 7.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Itcen Co vs. Samsung Publishing Co
Performance |
| Timeline |
| Itcen |
| Samsung Publishing |
Itcen and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itcen and Samsung Publishing
The main advantage of trading using opposite Itcen and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itcen 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.| Itcen vs. Pan Entertainment Co | Itcen vs. SAMG Entertainment Co | Itcen vs. Alton Sports CoLtd | Itcen vs. Daou Data Corp |
| 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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |