Correlation Between SAMG Entertainment and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment and Tae Kyung 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 Tae Kyung 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 Tae Kyung Chemical, you can compare the effects of market volatilities on SAMG Entertainment and Tae Kyung 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 Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and Tae Kyung.
Diversification Opportunities for SAMG Entertainment and Tae Kyung
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SAMG and Tae is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment Co and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical 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 Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of SAMG Entertainment i.e., SAMG Entertainment and Tae Kyung go up and down completely randomly.
Pair Corralation between SAMG Entertainment and Tae Kyung
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to generate 2.34 times more return on investment than Tae Kyung. However, SAMG Entertainment is 2.34 times more volatile than Tae Kyung Chemical. It trades about 0.23 of its potential returns per unit of risk. Tae Kyung Chemical is currently generating about 0.39 per unit of risk. If you would invest 1,148,000 in SAMG Entertainment Co on October 9, 2024 and sell it today you would earn a total of 199,000 from holding SAMG Entertainment Co or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMG Entertainment Co vs. Tae Kyung Chemical
Performance |
| Timeline |
| SAMG Entertainment |
| Tae Kyung Chemical |
SAMG Entertainment and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and Tae Kyung
The main advantage of trading using opposite SAMG Entertainment and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. LG Energy Solution | SAMG Entertainment vs. SK Hynix |
| Tae Kyung vs. PJ Electronics Co | Tae Kyung vs. KT Submarine Telecom | Tae Kyung vs. Wave Electronics Co | Tae Kyung vs. UJU Electronics 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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