Correlation Between Samick Musical and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Sungchang Autotech 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 Sungchang Autotech 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 Sungchang Autotech Co, you can compare the effects of market volatilities on Samick Musical and Sungchang Autotech 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 Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Sungchang Autotech.
Diversification Opportunities for Samick Musical and Sungchang Autotech
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samick and Sungchang is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech 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 Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Samick Musical i.e., Samick Musical and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Samick Musical and Sungchang Autotech
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.49 times more return on investment than Sungchang Autotech. However, Samick Musical Instruments is 2.03 times less risky than Sungchang Autotech. It trades about 0.07 of its potential returns per unit of risk. Sungchang Autotech Co is currently generating about -0.01 per unit of risk. If you would invest 109,400 in Samick Musical Instruments on September 21, 2024 and sell it today you would earn a total of 11,000 from holding Samick Musical Instruments or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Sungchang Autotech Co
Performance |
| Timeline |
| Samick Musical Instr |
| Sungchang Autotech |
Samick Musical and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Sungchang Autotech
The main advantage of trading using opposite Samick Musical and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Samick Musical vs. Foodnamoo | Samick Musical vs. Sempio Foods Co | Samick Musical vs. Hyundai Green Food | Samick Musical vs. Korea Information Communications |
| Sungchang Autotech vs. Duksan Hi Metal | Sungchang Autotech vs. Youngsin Metal Industrial | Sungchang Autotech vs. Heungkuk Metaltech CoLtd | Sungchang Autotech vs. Display Tech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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