Correlation Between CNVISION MEDIA and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and Samsung SDI 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 CNVISION MEDIA and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and Samsung SDI Co, you can compare the effects of market volatilities on CNVISION MEDIA and Samsung SDI 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 CNVISION MEDIA with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and Samsung SDI.
Diversification Opportunities for CNVISION MEDIA and Samsung SDI
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNVISION and Samsung is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and Samsung SDI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and CNVISION MEDIA 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 CNVISION MEDIA are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and Samsung SDI go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and Samsung SDI
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 0.92 times more return on investment than Samsung SDI. However, CNVISION MEDIA is 1.09 times less risky than Samsung SDI. It trades about 0.03 of its potential returns per unit of risk. Samsung SDI Co is currently generating about -0.07 per unit of risk. If you would invest 5.10 in CNVISION MEDIA on September 14, 2024 and sell it today you would earn a total of 0.55 from holding CNVISION MEDIA or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. Samsung SDI Co
Performance |
| Timeline |
| CNVISION MEDIA |
| Samsung SDI |
CNVISION MEDIA and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and Samsung SDI
The main advantage of trading using opposite CNVISION MEDIA and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, Samsung SDI 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 Samsung SDI will offset losses from the drop in Samsung SDI's long position.| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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