Correlation Between Samsung Special and JYP Entertainment
Can any of the company-specific risk be diversified away by investing in both Samsung Special and JYP Entertainment 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 Samsung Special and JYP Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Special Purpose and JYP Entertainment, you can compare the effects of market volatilities on Samsung Special and JYP Entertainment 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 Samsung Special with a short position of JYP Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Special and JYP Entertainment.
Diversification Opportunities for Samsung Special and JYP Entertainment
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and JYP is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Special Purpose and JYP Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JYP Entertainment and Samsung Special 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 Samsung Special Purpose are associated (or correlated) with JYP Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JYP Entertainment has no effect on the direction of Samsung Special i.e., Samsung Special and JYP Entertainment go up and down completely randomly.
Pair Corralation between Samsung Special and JYP Entertainment
Assuming the 90 days trading horizon Samsung Special Purpose is expected to under-perform the JYP Entertainment. In addition to that, Samsung Special is 1.14 times more volatile than JYP Entertainment. It trades about -0.07 of its total potential returns per unit of risk. JYP Entertainment is currently generating about 0.25 per unit of volatility. If you would invest 5,120,000 in JYP Entertainment on September 13, 2024 and sell it today you would earn a total of 2,000,000 from holding JYP Entertainment or generate 39.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Special Purpose vs. JYP Entertainment
Performance |
| Timeline |
| Samsung Special Purpose |
| JYP Entertainment |
Samsung Special and JYP Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Special and JYP Entertainment
The main advantage of trading using opposite Samsung Special and JYP Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Special position performs unexpectedly, JYP Entertainment 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 JYP Entertainment will offset losses from the drop in JYP Entertainment's long position.| Samsung Special vs. SS TECH | Samsung Special vs. KyungIn Electronics Co | Samsung Special vs. A Tech Solution Co | Samsung Special vs. Eagle Veterinary Technology |
| JYP Entertainment vs. YG Entertainment | JYP Entertainment vs. Cube Entertainment | JYP Entertainment vs. FNC 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |