Correlation Between SAMG Entertainment and Dongil Metal
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment and Dongil Metal 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 Dongil Metal 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 Dongil Metal Co, you can compare the effects of market volatilities on SAMG Entertainment and Dongil Metal 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 Dongil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and Dongil Metal.
Diversification Opportunities for SAMG Entertainment and Dongil Metal
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAMG and Dongil is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment Co and Dongil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Metal 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 Dongil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Metal has no effect on the direction of SAMG Entertainment i.e., SAMG Entertainment and Dongil Metal go up and down completely randomly.
Pair Corralation between SAMG Entertainment and Dongil Metal
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to generate 3.52 times more return on investment than Dongil Metal. However, SAMG Entertainment is 3.52 times more volatile than Dongil Metal Co. It trades about 0.08 of its potential returns per unit of risk. Dongil Metal Co is currently generating about 0.04 per unit of risk. If you would invest 1,135,000 in SAMG Entertainment Co on October 26, 2024 and sell it today you would earn a total of 430,000 from holding SAMG Entertainment Co or generate 37.89% 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. Dongil Metal Co
Performance |
| Timeline |
| SAMG Entertainment |
| Dongil Metal |
SAMG Entertainment and Dongil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and Dongil Metal
The main advantage of trading using opposite SAMG Entertainment and Dongil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment position performs unexpectedly, Dongil Metal 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 Dongil Metal will offset losses from the drop in Dongil Metal's long position.| SAMG Entertainment vs. Daiyang Metal Co | SAMG Entertainment vs. Tae Kyung Chemical | SAMG Entertainment vs. JC Chemical Co | SAMG Entertainment vs. PJ Metal Co |
| Dongil Metal vs. MEDIANA CoLtd | Dongil Metal vs. A Tech Solution Co | Dongil Metal vs. SAMG Entertainment Co | Dongil Metal vs. MediaZen |
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 CEOs Directory module to screen CEOs from public companies around the world.
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