Correlation Between SAMG Entertainment and DB HiTek
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment and DB HiTek 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 SAMG Entertainment and DB HiTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMG Entertainment Co and DB HiTek Co, you can compare the effects of market volatilities on SAMG Entertainment and DB HiTek 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 SAMG Entertainment with a short position of DB HiTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and DB HiTek.
Diversification Opportunities for SAMG Entertainment and DB HiTek
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAMG and 000990 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment Co and DB HiTek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB HiTek and SAMG 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 SAMG Entertainment Co are associated (or correlated) with DB HiTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB HiTek has no effect on the direction of SAMG Entertainment i.e., SAMG Entertainment and DB HiTek go up and down completely randomly.
Pair Corralation between SAMG Entertainment and DB HiTek
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to generate 1.11 times more return on investment than DB HiTek. However, SAMG Entertainment is 1.11 times more volatile than DB HiTek Co. It trades about 0.21 of its potential returns per unit of risk. DB HiTek Co is currently generating about 0.09 per unit of risk. If you would invest 1,090,000 in SAMG Entertainment Co on September 14, 2024 and sell it today you would earn a total of 219,000 from holding SAMG Entertainment Co or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMG Entertainment Co vs. DB HiTek Co
Performance |
| Timeline |
| SAMG Entertainment |
| DB HiTek |
SAMG Entertainment and DB HiTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and DB HiTek
The main advantage of trading using opposite SAMG Entertainment and DB HiTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment position performs unexpectedly, DB HiTek 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 DB HiTek will offset losses from the drop in DB HiTek's long position.| SAMG Entertainment vs. Hanmi Semiconductor Co | SAMG Entertainment vs. Samlip General Foods | SAMG Entertainment vs. Organic Special Pet | SAMG Entertainment vs. ABOV Semiconductor Co |
| DB HiTek vs. KIWI Media Group | DB HiTek vs. Inzi Display CoLtd | DB HiTek vs. Display Tech Co | DB HiTek vs. SAMG 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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