Correlation Between Samick Musical and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Samick Musical and MEDIPOST 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 MEDIPOST 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 MEDIPOST Co, you can compare the effects of market volatilities on Samick Musical and MEDIPOST 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 MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and MEDIPOST.
Diversification Opportunities for Samick Musical and MEDIPOST
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samick and MEDIPOST is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST 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 MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Samick Musical i.e., Samick Musical and MEDIPOST go up and down completely randomly.
Pair Corralation between Samick Musical and MEDIPOST
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 1.36 times more return on investment than MEDIPOST. However, Samick Musical is 1.36 times more volatile than MEDIPOST Co. It trades about 0.19 of its potential returns per unit of risk. MEDIPOST Co is currently generating about -0.08 per unit of risk. If you would invest 117,200 in Samick Musical Instruments on November 4, 2024 and sell it today you would earn a total of 21,500 from holding Samick Musical Instruments or generate 18.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. MEDIPOST Co
Performance |
| Timeline |
| Samick Musical Instr |
| MEDIPOST |
Samick Musical and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and MEDIPOST
The main advantage of trading using opposite Samick Musical and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| MEDIPOST vs. Dong A Steel Technology | MEDIPOST vs. Bosung Power Technology | MEDIPOST vs. Kukdong Oil Chemicals | MEDIPOST vs. LG Chemicals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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