Correlation Between SAMG Entertainment and Itcen
Can any of the company-specific risk be diversified away by investing in both SAMG Entertainment and Itcen 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 Itcen 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 Itcen Co, you can compare the effects of market volatilities on SAMG Entertainment and Itcen 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 Itcen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMG Entertainment and Itcen.
Diversification Opportunities for SAMG Entertainment and Itcen
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SAMG and Itcen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SAMG Entertainment Co and Itcen Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itcen 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 Itcen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itcen has no effect on the direction of SAMG Entertainment i.e., SAMG Entertainment and Itcen go up and down completely randomly.
Pair Corralation between SAMG Entertainment and Itcen
Assuming the 90 days trading horizon SAMG Entertainment Co is expected to under-perform the Itcen. But the stock apears to be less risky and, when comparing its historical volatility, SAMG Entertainment Co is 1.11 times less risky than Itcen. The stock trades about -0.05 of its potential returns per unit of risk. The Itcen Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 417,000 in Itcen Co on October 14, 2024 and sell it today you would earn a total of 119,000 from holding Itcen Co or generate 28.54% 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. Itcen Co
Performance |
| Timeline |
| SAMG Entertainment |
| Itcen |
SAMG Entertainment and Itcen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMG Entertainment and Itcen
The main advantage of trading using opposite SAMG Entertainment and Itcen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMG Entertainment position performs unexpectedly, Itcen 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 Itcen will offset losses from the drop in Itcen's long position.| SAMG Entertainment vs. Daishin Information Communications | SAMG Entertainment vs. Samji Electronics Co | SAMG Entertainment vs. SungMoon Electronics Co | SAMG Entertainment vs. ABCO Electronics Co |
| Itcen vs. Pan Entertainment Co | Itcen vs. SAMG Entertainment Co | Itcen vs. Alton Sports CoLtd | Itcen vs. Daou Data Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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