Correlation Between Samsung Publishing and Settlebank
Can any of the company-specific risk be diversified away by investing in both Samsung Publishing and Settlebank 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 Samsung Publishing and Settlebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Publishing Co and Settlebank, you can compare the effects of market volatilities on Samsung Publishing and Settlebank 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 Samsung Publishing with a short position of Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Publishing and Settlebank.
Diversification Opportunities for Samsung Publishing and Settlebank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and Settlebank is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Publishing Co and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank and Samsung Publishing 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 Samsung Publishing Co are associated (or correlated) with Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of Samsung Publishing i.e., Samsung Publishing and Settlebank go up and down completely randomly.
Pair Corralation between Samsung Publishing and Settlebank
Assuming the 90 days trading horizon Samsung Publishing Co is expected to generate 1.3 times more return on investment than Settlebank. However, Samsung Publishing is 1.3 times more volatile than Settlebank. It trades about 0.02 of its potential returns per unit of risk. Settlebank is currently generating about -0.06 per unit of risk. If you would invest 1,466,266 in Samsung Publishing Co on October 3, 2024 and sell it today you would earn a total of 14,734 from holding Samsung Publishing Co or generate 1.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Publishing Co vs. Settlebank
Performance |
Timeline |
Samsung Publishing |
Settlebank |
Samsung Publishing and Settlebank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Publishing and Settlebank
The main advantage of trading using opposite Samsung Publishing and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Publishing position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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