Correlation Between Samick Musical and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Samick Musical and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Koryo Credit.
Diversification Opportunities for Samick Musical and Koryo Credit
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samick and Koryo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Samick Musical i.e., Samick Musical and Koryo Credit go up and down completely randomly.
Pair Corralation between Samick Musical and Koryo Credit
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 1.43 times more return on investment than Koryo Credit. However, Samick Musical is 1.43 times more volatile than Koryo Credit Information. It trades about 0.14 of its potential returns per unit of risk. Koryo Credit Information is currently generating about 0.01 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 Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samick Musical Instruments vs. Koryo Credit Information
Performance |
Timeline |
Samick Musical Instr |
Koryo Credit Information |
Samick Musical and Koryo Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samick Musical and Koryo Credit
The main advantage of trading using opposite Samick Musical and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit'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 |
Koryo Credit vs. DSC Investment | Koryo Credit vs. Mobileleader CoLtd | Koryo Credit vs. Korea Information Communications | Koryo Credit vs. EBEST Investment Securities |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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