Correlation Between Samick Musical and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Jahwa Electron 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 Jahwa Electron 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 Jahwa Electron, you can compare the effects of market volatilities on Samick Musical and Jahwa Electron 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 Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Jahwa Electron.
Diversification Opportunities for Samick Musical and Jahwa Electron
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samick and Jahwa is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron 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 Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of Samick Musical i.e., Samick Musical and Jahwa Electron go up and down completely randomly.
Pair Corralation between Samick Musical and Jahwa Electron
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.2 times more return on investment than Jahwa Electron. However, Samick Musical Instruments is 4.9 times less risky than Jahwa Electron. It trades about 0.07 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.23 per unit of risk. If you would invest 109,800 in Samick Musical Instruments on August 27, 2024 and sell it today you would earn a total of 1,100 from holding Samick Musical Instruments or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Jahwa Electron
Performance |
| Timeline |
| Samick Musical Instr |
| Jahwa Electron |
Samick Musical and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Jahwa Electron
The main advantage of trading using opposite Samick Musical and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| Jahwa Electron vs. Homecast CoLtd | Jahwa Electron vs. TJ media Co | Jahwa Electron vs. Hannong Chemicals | Jahwa Electron vs. Daejung Chemicals Metals |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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