Correlation Between Samsung Special and DC Media
Can any of the company-specific risk be diversified away by investing in both Samsung Special and DC Media 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 DC Media 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 DC Media CoLtd, you can compare the effects of market volatilities on Samsung Special and DC Media 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 DC Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Special and DC Media.
Diversification Opportunities for Samsung Special and DC Media
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and 263720 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Special Purpose and DC Media CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC Media CoLtd 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 DC Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC Media CoLtd has no effect on the direction of Samsung Special i.e., Samsung Special and DC Media go up and down completely randomly.
Pair Corralation between Samsung Special and DC Media
Assuming the 90 days trading horizon Samsung Special Purpose is expected to generate 1.48 times more return on investment than DC Media. However, Samsung Special is 1.48 times more volatile than DC Media CoLtd. It trades about 0.15 of its potential returns per unit of risk. DC Media CoLtd is currently generating about 0.11 per unit of risk. 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 | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Samsung Special Purpose vs. DC Media CoLtd
Performance |
| Timeline |
| Samsung Special Purpose |
| DC Media CoLtd |
Samsung Special and DC Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Special and DC Media
The main advantage of trading using opposite Samsung Special and DC Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Special position performs unexpectedly, DC Media 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 DC Media will offset losses from the drop in DC Media's long position.| 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 |
| DC Media vs. PJ Metal Co | DC Media vs. Sejong Industrial | DC Media vs. Sejong Telecom | DC Media vs. Songwon Industrial 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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