Correlation Between Samick Musical and Hankuk Steel
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Hankuk Steel 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 Hankuk Steel 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 Hankuk Steel Wire, you can compare the effects of market volatilities on Samick Musical and Hankuk Steel 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 Hankuk Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Hankuk Steel.
Diversification Opportunities for Samick Musical and Hankuk Steel
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samick and Hankuk is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Hankuk Steel Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankuk Steel Wire 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 Hankuk Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankuk Steel Wire has no effect on the direction of Samick Musical i.e., Samick Musical and Hankuk Steel go up and down completely randomly.
Pair Corralation between Samick Musical and Hankuk Steel
Assuming the 90 days trading horizon Samick Musical is expected to generate 1.22 times less return on investment than Hankuk Steel. But when comparing it to its historical volatility, Samick Musical Instruments is 1.15 times less risky than Hankuk Steel. It trades about 0.07 of its potential returns per unit of risk. Hankuk Steel Wire is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 324,500 in Hankuk Steel Wire on December 6, 2024 and sell it today you would earn a total of 49,000 from holding Hankuk Steel Wire or generate 15.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Hankuk Steel Wire
Performance |
| Timeline |
| Samick Musical Instr |
| Hankuk Steel Wire |
Samick Musical and Hankuk Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Hankuk Steel
The main advantage of trading using opposite Samick Musical and Hankuk Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Hankuk Steel 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 Hankuk Steel will offset losses from the drop in Hankuk Steel's long position.| Samick Musical vs. Infinitt Healthcare Co | ||
| Samick Musical vs. Samyoung Electronics Co | ||
| Samick Musical vs. Daewoo Electronic Components | ||
| Samick Musical vs. Dongbang Transport Logistics |
| Hankuk Steel vs. PJ Metal Co | ||
| Hankuk Steel vs. Formetal Co | ||
| Hankuk Steel vs. Daiyang Metal Co | ||
| Hankuk Steel vs. Kakao Games 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |