Correlation Between Samick Musical and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Aprogen Healthcare 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 Aprogen Healthcare 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 Aprogen Healthcare Games, you can compare the effects of market volatilities on Samick Musical and Aprogen Healthcare 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 Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Aprogen Healthcare.
Diversification Opportunities for Samick Musical and Aprogen Healthcare
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samick and Aprogen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games 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 Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Samick Musical i.e., Samick Musical and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Samick Musical and Aprogen Healthcare
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.41 times more return on investment than Aprogen Healthcare. However, Samick Musical Instruments is 2.41 times less risky than Aprogen Healthcare. It trades about 0.24 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about 0.04 per unit of risk. If you would invest 105,064 in Samick Musical Instruments on October 12, 2024 and sell it today you would earn a total of 11,736 from holding Samick Musical Instruments or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Samick Musical Instr |
| Aprogen Healthcare Games |
Samick Musical and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Aprogen Healthcare
The main advantage of trading using opposite Samick Musical and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Aprogen Healthcare 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Samick Musical vs. Hansol Chemical Co | Samick Musical vs. BGF Retail Co | Samick Musical vs. JC Chemical Co | Samick Musical vs. Dongnam Chemical Co |
| Aprogen Healthcare vs. LG Household Healthcare | Aprogen Healthcare vs. Pureun Mutual Savings | Aprogen Healthcare vs. Handok Clean Tech | Aprogen Healthcare vs. DB Financial Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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