Correlation Between Samick Musical and Sajo Seafood
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Sajo Seafood 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 Sajo Seafood 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 Sajo Seafood, you can compare the effects of market volatilities on Samick Musical and Sajo Seafood 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 Sajo Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Sajo Seafood.
Diversification Opportunities for Samick Musical and Sajo Seafood
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samick and Sajo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Sajo Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sajo Seafood 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 Sajo Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sajo Seafood has no effect on the direction of Samick Musical i.e., Samick Musical and Sajo Seafood go up and down completely randomly.
Pair Corralation between Samick Musical and Sajo Seafood
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 1.89 times more return on investment than Sajo Seafood. However, Samick Musical is 1.89 times more volatile than Sajo Seafood. It trades about 0.24 of its potential returns per unit of risk. Sajo Seafood is currently generating about -0.12 per unit of risk. If you would invest 105,064 in Samick Musical Instruments on October 12, 2024 and sell it today you would earn a total of 11,736 from holding Samick Musical Instruments or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Sajo Seafood
Performance |
| Timeline |
| Samick Musical Instr |
| Sajo Seafood |
Samick Musical and Sajo Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Sajo Seafood
The main advantage of trading using opposite Samick Musical and Sajo Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Sajo Seafood 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 Sajo Seafood will offset losses from the drop in Sajo Seafood's long position.| Samick Musical vs. Shinhan Inverse Copper | Samick Musical vs. Daiyang Metal Co | Samick Musical vs. DONGKUK TED METAL | Samick Musical vs. Seoyon Topmetal Co |
| Sajo Seafood vs. PJ Metal Co | Sajo Seafood vs. Kukdo Chemical Co | Sajo Seafood vs. Samick Musical Instruments | Sajo Seafood vs. Jeju Semiconductor Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |