Correlation Between SKONEC Entertainment and Samsung Card
Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment and Samsung Card 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 SKONEC Entertainment and Samsung Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKONEC Entertainment Co and Samsung Card Co, you can compare the effects of market volatilities on SKONEC Entertainment and Samsung Card 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 SKONEC Entertainment with a short position of Samsung Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and Samsung Card.
Diversification Opportunities for SKONEC Entertainment and Samsung Card
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SKONEC and Samsung is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co and Samsung Card Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Card and SKONEC Entertainment 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 SKONEC Entertainment Co are associated (or correlated) with Samsung Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Card has no effect on the direction of SKONEC Entertainment i.e., SKONEC Entertainment and Samsung Card go up and down completely randomly.
Pair Corralation between SKONEC Entertainment and Samsung Card
Assuming the 90 days trading horizon SKONEC Entertainment Co is expected to generate 3.5 times more return on investment than Samsung Card. However, SKONEC Entertainment is 3.5 times more volatile than Samsung Card Co. It trades about 0.35 of its potential returns per unit of risk. Samsung Card Co is currently generating about -0.13 per unit of risk. If you would invest 331,000 in SKONEC Entertainment Co on October 24, 2024 and sell it today you would earn a total of 98,500 from holding SKONEC Entertainment Co or generate 29.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKONEC Entertainment Co vs. Samsung Card Co
Performance |
| Timeline |
| SKONEC Entertainment |
| Samsung Card |
SKONEC Entertainment and Samsung Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKONEC Entertainment and Samsung Card
The main advantage of trading using opposite SKONEC Entertainment and Samsung Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment position performs unexpectedly, Samsung Card 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 Card will offset losses from the drop in Samsung Card's long position.| SKONEC Entertainment vs. Samsung Life Insurance | SKONEC Entertainment vs. Industrial Bank | SKONEC Entertainment vs. Dongbu Insurance Co | SKONEC Entertainment vs. Hyunwoo Industrial Co |
| Samsung Card vs. Spolytech Co | Samsung Card vs. Kaonmedia Co | Samsung Card vs. Amogreentech Co | Samsung Card vs. SKONEC Entertainment 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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