Correlation Between DC Media and Samsung Special
Can any of the company-specific risk be diversified away by investing in both DC Media and Samsung Special 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 DC Media and Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DC Media CoLtd and Samsung Special Purpose, you can compare the effects of market volatilities on DC Media and Samsung Special 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 DC Media with a short position of Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of DC Media and Samsung Special.
Diversification Opportunities for DC Media and Samsung Special
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 263720 and Samsung is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding DC Media CoLtd and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose and DC Media 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 DC Media CoLtd are associated (or correlated) with Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of DC Media i.e., DC Media and Samsung Special go up and down completely randomly.
Pair Corralation between DC Media and Samsung Special
Assuming the 90 days trading horizon DC Media is expected to generate 2.12 times less return on investment than Samsung Special. But when comparing it to its historical volatility, DC Media CoLtd is 1.48 times less risky than Samsung Special. It trades about 0.11 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 193,800 in Samsung Special Purpose on November 28, 2024 and sell it today you would earn a total of 9,200 from holding Samsung Special Purpose or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
DC Media CoLtd vs. Samsung Special Purpose
Performance |
| Timeline |
| DC Media CoLtd |
| Samsung Special Purpose |
DC Media and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DC Media and Samsung Special
The main advantage of trading using opposite DC Media and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DC Media position performs unexpectedly, Samsung Special 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 Special will offset losses from the drop in Samsung Special's long position.| DC Media vs. PJ Metal Co | DC Media vs. Sejong Industrial | DC Media vs. Sejong Telecom | DC Media vs. Songwon Industrial Co |
| Samsung Special vs. Lotte Non Life Insurance | Samsung Special vs. Hotel Shilla Co | Samsung Special vs. Sung Bo Chemicals | Samsung Special vs. YeaRimDang Publishing 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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