Correlation Between Samick Musical and UNISEM
Can any of the company-specific risk be diversified away by investing in both Samick Musical and UNISEM 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 UNISEM 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 UNISEM Co, you can compare the effects of market volatilities on Samick Musical and UNISEM 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 UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and UNISEM.
Diversification Opportunities for Samick Musical and UNISEM
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samick and UNISEM is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM 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 UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Samick Musical i.e., Samick Musical and UNISEM go up and down completely randomly.
Pair Corralation between Samick Musical and UNISEM
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.52 times more return on investment than UNISEM. However, Samick Musical Instruments is 1.92 times less risky than UNISEM. It trades about 0.14 of its potential returns per unit of risk. UNISEM Co is currently generating about 0.01 per unit of risk. If you would invest 105,255 in Samick Musical Instruments on October 24, 2024 and sell it today you would earn a total of 13,445 from holding Samick Musical Instruments or generate 12.77% 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. UNISEM Co
Performance |
| Timeline |
| Samick Musical Instr |
| UNISEM |
Samick Musical and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and UNISEM
The main advantage of trading using opposite Samick Musical and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| Samick Musical vs. Hankuk Steel Wire | Samick Musical vs. Husteel | Samick Musical vs. INSUN Environmental New | Samick Musical vs. DONGKUK TED METAL |
| UNISEM vs. Samick Musical Instruments | UNISEM vs. Daeduck Electronics Co | UNISEM vs. Display Tech Co | UNISEM vs. Shinil Electronics Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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