Correlation Between KG Eco and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both KG Eco 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 KG Eco and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KG Eco Technology and Samsung Publishing Co, you can compare the effects of market volatilities on KG Eco 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 KG Eco with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of KG Eco and Samsung Publishing.
Diversification Opportunities for KG Eco and Samsung Publishing
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 151860 and Samsung is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding KG Eco Technology and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and KG Eco 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 KG Eco Technology 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 KG Eco i.e., KG Eco and Samsung Publishing go up and down completely randomly.
Pair Corralation between KG Eco and Samsung Publishing
Assuming the 90 days trading horizon KG Eco Technology is expected to generate 0.89 times more return on investment than Samsung Publishing. However, KG Eco Technology is 1.13 times less risky than Samsung Publishing. It trades about 0.23 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.06 per unit of risk. If you would invest 471,208 in KG Eco Technology on October 13, 2024 and sell it today you would earn a total of 39,792 from holding KG Eco Technology or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KG Eco Technology vs. Samsung Publishing Co
Performance |
| Timeline |
| KG Eco Technology |
| Samsung Publishing |
KG Eco and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KG Eco and Samsung Publishing
The main advantage of trading using opposite KG Eco and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KG Eco 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.| KG Eco vs. Korea Investment Holdings | KG Eco vs. Seers Technology | KG Eco vs. KTB Investment Securities | KG Eco vs. Ilji Technology Co |
| Samsung Publishing vs. KG Eco Technology | Samsung Publishing vs. NewFlex Technology Co | Samsung Publishing vs. Jinro Distillers Co | Samsung Publishing vs. Hanjin Transportation 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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