Correlation Between SAMG Entertainment and TAEYANG
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment and TAEYANG 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 TAEYANG 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 TAEYANG, you can compare the effects of market volatilities on SAMG Entertainment and TAEYANG 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 TAEYANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and TAEYANG.
Diversification Opportunities for SAMG Entertainment and TAEYANG
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAMG and TAEYANG is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment Co and TAEYANG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAEYANG 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 TAEYANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAEYANG has no effect on the direction of SAMG Entertainment i.e., SAMG Entertainment and TAEYANG go up and down completely randomly.
Pair Corralation between SAMG Entertainment and TAEYANG
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to under-perform the TAEYANG. In addition to that, SAMG Entertainment is 3.41 times more volatile than TAEYANG. It trades about -0.04 of its total potential returns per unit of risk. TAEYANG is currently generating about -0.02 per unit of volatility. If you would invest 749,609 in TAEYANG on October 29, 2024 and sell it today you would lose (111,609) from holding TAEYANG or give up 14.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMG Entertainment Co vs. TAEYANG
Performance |
| Timeline |
| SAMG Entertainment |
| TAEYANG |
SAMG Entertainment and TAEYANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and TAEYANG
The main advantage of trading using opposite SAMG Entertainment and TAEYANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment position performs unexpectedly, TAEYANG 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 TAEYANG will offset losses from the drop in TAEYANG's long position.| SAMG Entertainment vs. JYP Entertainment Corp | SAMG Entertainment vs. Seoul Food Industrial | SAMG Entertainment vs. YG Entertainment | SAMG Entertainment vs. SKONEC Entertainment Co |
| TAEYANG vs. TS Investment Corp | TAEYANG vs. Daol Investment Securities | TAEYANG vs. Atinum Investment Co | TAEYANG vs. Korea Investment Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |