Correlation Between Samick Musical and SCI Information
Can any of the company-specific risk be diversified away by investing in both Samick Musical and SCI Information 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 Samick Musical and SCI Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samick Musical Instruments and SCI Information Service, you can compare the effects of market volatilities on Samick Musical and SCI Information 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 Samick Musical with a short position of SCI Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and SCI Information.
Diversification Opportunities for Samick Musical and SCI Information
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samick and SCI is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and SCI Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Information Service and Samick Musical 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 Samick Musical Instruments are associated (or correlated) with SCI Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Information Service has no effect on the direction of Samick Musical i.e., Samick Musical and SCI Information go up and down completely randomly.
Pair Corralation between Samick Musical and SCI Information
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.64 times more return on investment than SCI Information. However, Samick Musical Instruments is 1.57 times less risky than SCI Information. It trades about 0.14 of its potential returns per unit of risk. SCI Information Service is currently generating about -0.1 per unit of risk. If you would invest 106,800 in Samick Musical Instruments on September 25, 2024 and sell it today you would earn a total of 12,700 from holding Samick Musical Instruments or generate 11.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Samick Musical Instruments vs. SCI Information Service
Performance |
Timeline |
Samick Musical Instr |
SCI Information Service |
Samick Musical and SCI Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samick Musical and SCI Information
The main advantage of trading using opposite Samick Musical and SCI Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, SCI Information 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 SCI Information will offset losses from the drop in SCI Information's long position.Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Wonbang Tech Co | Samick Musical vs. Busan Industrial Co | Samick Musical vs. Busan Ind |
SCI Information vs. Alton Sports CoLtd | SCI Information vs. Jeju Air Co | SCI Information vs. Jin Air Co | SCI Information vs. Air Busan Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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