Correlation Between LAKE MATERIALS and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both LAKE MATERIALS 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 LAKE MATERIALS and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAKE MATERIALS LTD and Samsung Publishing Co, you can compare the effects of market volatilities on LAKE MATERIALS 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 LAKE MATERIALS with a short position of Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAKE MATERIALS and Samsung Publishing.
Diversification Opportunities for LAKE MATERIALS and Samsung Publishing
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LAKE and Samsung is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding LAKE MATERIALS LTD and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing and LAKE MATERIALS 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 LAKE MATERIALS LTD 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 LAKE MATERIALS i.e., LAKE MATERIALS and Samsung Publishing go up and down completely randomly.
Pair Corralation between LAKE MATERIALS and Samsung Publishing
Assuming the 90 days trading horizon LAKE MATERIALS LTD is expected to generate 1.43 times more return on investment than Samsung Publishing. However, LAKE MATERIALS is 1.43 times more volatile than Samsung Publishing Co. It trades about 0.05 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.02 per unit of risk. If you would invest 582,000 in LAKE MATERIALS LTD on October 30, 2024 and sell it today you would earn a total of 610,000 from holding LAKE MATERIALS LTD or generate 104.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAKE MATERIALS LTD vs. Samsung Publishing Co
Performance |
| Timeline |
| LAKE MATERIALS LTD |
| Samsung Publishing |
LAKE MATERIALS and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAKE MATERIALS and Samsung Publishing
The main advantage of trading using opposite LAKE MATERIALS and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAKE MATERIALS 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.| LAKE MATERIALS vs. Sangsangin Investment Securities | LAKE MATERIALS vs. Seers Technology | LAKE MATERIALS vs. BIT Computer Co | LAKE MATERIALS vs. HB Technology TD |
| Samsung Publishing vs. LG Household Healthcare | Samsung Publishing vs. Clean Science co | Samsung Publishing vs. Mgame Corp | Samsung Publishing vs. Hotel Shilla 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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