Correlation Between SAMG Entertainment and SBI Investment
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment and SBI Investment 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 SBI Investment 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 SBI Investment KOREA, you can compare the effects of market volatilities on SAMG Entertainment and SBI Investment 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 SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and SBI Investment.
Diversification Opportunities for SAMG Entertainment and SBI Investment
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAMG and SBI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment Co and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA 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 SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of SAMG Entertainment i.e., SAMG Entertainment and SBI Investment go up and down completely randomly.
Pair Corralation between SAMG Entertainment and SBI Investment
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to under-perform the SBI Investment. In addition to that, SAMG Entertainment is 1.71 times more volatile than SBI Investment KOREA. It trades about -0.01 of its total potential returns per unit of risk. SBI Investment KOREA is currently generating about -0.01 per unit of volatility. If you would invest 106,500 in SBI Investment KOREA on September 19, 2024 and sell it today you would lose (26,300) from holding SBI Investment KOREA or give up 24.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
SAMG Entertainment Co vs. SBI Investment KOREA
Performance |
| Timeline |
| SAMG Entertainment |
| SBI Investment KOREA |
SAMG Entertainment and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and SBI Investment
The main advantage of trading using opposite SAMG Entertainment and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment'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 |
| SBI Investment vs. KB Financial Group | SBI Investment vs. Shinhan Financial Group | SBI Investment vs. Hana Financial | SBI Investment vs. Woori Financial Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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