Correlation Between PJ Metal and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both PJ Metal 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 PJ Metal and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJ Metal Co and Samsung Publishing Co, you can compare the effects of market volatilities on PJ Metal 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 PJ Metal with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Metal and Samsung Publishing.
Diversification Opportunities for PJ Metal and Samsung Publishing
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between 128660 and Samsung is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PJ Metal 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 PJ Metal 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 PJ Metal 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 PJ Metal i.e., PJ Metal and Samsung Publishing go up and down completely randomly.
Pair Corralation between PJ Metal and Samsung Publishing
Assuming the 90 days trading horizon PJ Metal Co is expected to generate 0.51 times more return on investment than Samsung Publishing. However, PJ Metal Co is 1.95 times less risky than Samsung Publishing. It trades about -0.08 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.05 per unit of risk. If you would invest 303,500 in PJ Metal Co on November 7, 2024 and sell it today you would lose (3,500) from holding PJ Metal Co or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJ Metal Co vs. Samsung Publishing Co
Performance |
| Timeline |
| PJ Metal |
| Samsung Publishing |
PJ Metal and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJ Metal and Samsung Publishing
The main advantage of trading using opposite PJ Metal and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Metal 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.| PJ Metal vs. Dongnam Chemical Co | PJ Metal vs. Namhae Chemical | PJ Metal vs. Hansol Chemical Co | PJ Metal vs. Samsung Life Insurance |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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