Correlation Between Samick Musical and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Stic Investments 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 Stic Investments 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 Stic Investments, you can compare the effects of market volatilities on Samick Musical and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Stic Investments.
Diversification Opportunities for Samick Musical and Stic Investments
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samick and Stic is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Samick Musical i.e., Samick Musical and Stic Investments go up and down completely randomly.
Pair Corralation between Samick Musical and Stic Investments
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.38 times more return on investment than Stic Investments. However, Samick Musical Instruments is 2.6 times less risky than Stic Investments. It trades about 0.07 of its potential returns per unit of risk. Stic Investments is currently generating about 0.01 per unit of risk. If you would invest 109,700 in Samick Musical Instruments on August 31, 2024 and sell it today you would earn a total of 1,200 from holding Samick Musical Instruments or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Stic Investments
Performance |
| Timeline |
| Samick Musical Instr |
| Stic Investments |
Samick Musical and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Stic Investments
The main advantage of trading using opposite Samick Musical and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| Stic Investments vs. Dongsin Engineering Construction | Stic Investments vs. Doosan Fuel Cell | Stic Investments vs. Daishin Balance 1 | Stic Investments vs. Total Soft Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |