Correlation Between Samick Musical and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Samick Musical and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Duksan Hi.
Diversification Opportunities for Samick Musical and Duksan Hi
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samick and Duksan is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Samick Musical i.e., Samick Musical and Duksan Hi go up and down completely randomly.
Pair Corralation between Samick Musical and Duksan Hi
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.37 times more return on investment than Duksan Hi. However, Samick Musical Instruments is 2.72 times less risky than Duksan Hi. It trades about -0.05 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.19 per unit of risk. If you would invest 119,300 in Samick Musical Instruments on September 3, 2024 and sell it today you would lose (8,800) from holding Samick Musical Instruments or give up 7.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Duksan Hi Metal
Performance |
| Timeline |
| Samick Musical Instr |
| Duksan Hi Metal |
Samick Musical and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Duksan Hi
The main advantage of trading using opposite Samick Musical and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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