Correlation Between Samick Musical and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on Samick Musical and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Shinsegae Information.
Diversification Opportunities for Samick Musical and Shinsegae Information
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samick and Shinsegae is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Samick Musical i.e., Samick Musical and Shinsegae Information go up and down completely randomly.
Pair Corralation between Samick Musical and Shinsegae Information
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.33 times more return on investment than Shinsegae Information. However, Samick Musical Instruments is 2.99 times less risky than Shinsegae Information. It trades about 0.26 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.36 per unit of risk. If you would invest 107,800 in Samick Musical Instruments on September 4, 2024 and sell it today you would earn a total of 3,000 from holding Samick Musical Instruments or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Shinsegae Information Communic
Performance |
| Timeline |
| Samick Musical Instr |
| Shinsegae Information |
Samick Musical and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Shinsegae Information
The main advantage of trading using opposite Samick Musical and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| Samick Musical vs. Pureun Mutual Savings | Samick Musical vs. Korea Shipbuilding Offshore | Samick Musical vs. Kukdong Oil Chemicals | Samick Musical vs. Sung Bo Chemicals |
| Shinsegae Information vs. DB Financial Investment | Shinsegae Information vs. Shinhan Financial Group | Shinsegae Information vs. Korean Reinsurance Co | Shinsegae Information vs. KakaoBank 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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