Correlation Between Hanjoo Light and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Hanjoo Light 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 Hanjoo Light and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjoo Light Metal and Samsung Publishing Co, you can compare the effects of market volatilities on Hanjoo Light 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 Hanjoo Light with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjoo Light and Samsung Publishing.
Diversification Opportunities for Hanjoo Light and Samsung Publishing
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanjoo and Samsung is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hanjoo Light Metal and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and Hanjoo Light 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 Hanjoo Light Metal 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 Hanjoo Light i.e., Hanjoo Light and Samsung Publishing go up and down completely randomly.
Pair Corralation between Hanjoo Light and Samsung Publishing
Assuming the 90 days trading horizon Hanjoo Light Metal is expected to generate 0.99 times more return on investment than Samsung Publishing. However, Hanjoo Light Metal is 1.01 times less risky than Samsung Publishing. It trades about 0.19 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 77,400 in Hanjoo Light Metal on November 7, 2024 and sell it today you would earn a total of 3,900 from holding Hanjoo Light Metal or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjoo Light Metal vs. Samsung Publishing Co
Performance |
| Timeline |
| Hanjoo Light Metal |
| Samsung Publishing |
Hanjoo Light and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjoo Light and Samsung Publishing
The main advantage of trading using opposite Hanjoo Light and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjoo Light 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.| Hanjoo Light vs. Hana Financial | Hanjoo Light vs. Hanwha Chemical Corp | Hanjoo Light vs. Settlebank | Hanjoo Light vs. Automobile Pc |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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