Correlation Between REMEDY ENTERTAINMENT and SAMS INTERNAT
Can any of the company-specific risk be diversified away by investing in both REMEDY ENTERTAINMENT and SAMS INTERNAT 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 REMEDY ENTERTAINMENT and SAMS INTERNAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REMEDY ENTERTAINMENT OYJ and SAMS INTERNAT R, you can compare the effects of market volatilities on REMEDY ENTERTAINMENT and SAMS INTERNAT 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 REMEDY ENTERTAINMENT with a short position of SAMS INTERNAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of REMEDY ENTERTAINMENT and SAMS INTERNAT.
Diversification Opportunities for REMEDY ENTERTAINMENT and SAMS INTERNAT
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between REMEDY and SAMS is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding REMEDY ENTERTAINMENT OYJ and SAMS INTERNAT R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMS INTERNAT R and REMEDY 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 REMEDY ENTERTAINMENT OYJ are associated (or correlated) with SAMS INTERNAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMS INTERNAT R has no effect on the direction of REMEDY ENTERTAINMENT i.e., REMEDY ENTERTAINMENT and SAMS INTERNAT go up and down completely randomly.
Pair Corralation between REMEDY ENTERTAINMENT and SAMS INTERNAT
Assuming the 90 days horizon REMEDY ENTERTAINMENT OYJ is expected to generate 1.18 times more return on investment than SAMS INTERNAT. However, REMEDY ENTERTAINMENT is 1.18 times more volatile than SAMS INTERNAT R. It trades about 0.04 of its potential returns per unit of risk. SAMS INTERNAT R is currently generating about 0.0 per unit of risk. If you would invest 1,400 in REMEDY ENTERTAINMENT OYJ on November 27, 2024 and sell it today you would earn a total of 20.00 from holding REMEDY ENTERTAINMENT OYJ or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REMEDY ENTERTAINMENT OYJ vs. SAMS INTERNAT R
Performance |
| Timeline |
| REMEDY ENTERTAINMENT OYJ |
| SAMS INTERNAT R |
REMEDY ENTERTAINMENT and SAMS INTERNAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REMEDY ENTERTAINMENT and SAMS INTERNAT
The main advantage of trading using opposite REMEDY ENTERTAINMENT and SAMS INTERNAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REMEDY ENTERTAINMENT position performs unexpectedly, SAMS INTERNAT 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 SAMS INTERNAT will offset losses from the drop in SAMS INTERNAT's long position.| REMEDY ENTERTAINMENT vs. American Homes 4 | REMEDY ENTERTAINMENT vs. Haverty Furniture Companies | REMEDY ENTERTAINMENT vs. ANGI Homeservices | REMEDY ENTERTAINMENT vs. KENEDIX OFFICE INV |
| SAMS INTERNAT vs. Fortescue Metals Group | SAMS INTERNAT vs. East Africa Metals | SAMS INTERNAT vs. Transport International Holdings | SAMS INTERNAT vs. Yuexiu Transport Infrastructure |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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