Correlation Between Samick Musical and JC Chemical
Can any of the company-specific risk be diversified away by investing in both Samick Musical and JC Chemical 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 JC Chemical 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 JC Chemical Co, you can compare the effects of market volatilities on Samick Musical and JC Chemical 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 JC Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and JC Chemical.
Diversification Opportunities for Samick Musical and JC Chemical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samick and 137950 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and JC Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Chemical 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 JC Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Chemical has no effect on the direction of Samick Musical i.e., Samick Musical and JC Chemical go up and down completely randomly.
Pair Corralation between Samick Musical and JC Chemical
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 1.29 times more return on investment than JC Chemical. However, Samick Musical is 1.29 times more volatile than JC Chemical Co. It trades about 0.24 of its potential returns per unit of risk. JC Chemical Co is currently generating about 0.28 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. JC Chemical Co
Performance |
| Timeline |
| Samick Musical Instr |
| JC Chemical |
Samick Musical and JC Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and JC Chemical
The main advantage of trading using opposite Samick Musical and JC Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, JC Chemical 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 JC Chemical will offset losses from the drop in JC Chemical's long position.| Samick Musical vs. Shinhan Inverse Copper | Samick Musical vs. Daiyang Metal Co | Samick Musical vs. DONGKUK TED METAL | Samick Musical vs. Seoyon Topmetal Co |
| JC Chemical vs. RFTech Co | JC Chemical vs. Yura Tech Co | JC Chemical vs. Narae Nanotech Corp | JC Chemical vs. A Tech Solution 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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