Correlation Between Samick Musical and Shinsung Delta
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Shinsung Delta 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 Shinsung Delta 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 Shinsung Delta Tech, you can compare the effects of market volatilities on Samick Musical and Shinsung Delta 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 Shinsung Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Shinsung Delta.
Diversification Opportunities for Samick Musical and Shinsung Delta
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samick and Shinsung is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Shinsung Delta Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsung Delta Tech 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 Shinsung Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsung Delta Tech has no effect on the direction of Samick Musical i.e., Samick Musical and Shinsung Delta go up and down completely randomly.
Pair Corralation between Samick Musical and Shinsung Delta
Assuming the 90 days trading horizon Samick Musical is expected to generate 16.05 times less return on investment than Shinsung Delta. But when comparing it to its historical volatility, Samick Musical Instruments is 8.49 times less risky than Shinsung Delta. It trades about 0.11 of its potential returns per unit of risk. Shinsung Delta Tech is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,700,000 in Shinsung Delta Tech on August 29, 2024 and sell it today you would earn a total of 2,050,000 from holding Shinsung Delta Tech or generate 43.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Shinsung Delta Tech
Performance |
| Timeline |
| Samick Musical Instr |
| Shinsung Delta Tech |
Samick Musical and Shinsung Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Shinsung Delta
The main advantage of trading using opposite Samick Musical and Shinsung Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Shinsung Delta 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 Shinsung Delta will offset losses from the drop in Shinsung Delta's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| Shinsung Delta vs. Inzi Display CoLtd | Shinsung Delta vs. Samick Musical Instruments | Shinsung Delta vs. Pyung Hwa Industrial | Shinsung Delta vs. Taeyang Metal Industrial |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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