Correlation Between Samick Musical and SillaJen
Can any of the company-specific risk be diversified away by investing in both Samick Musical and SillaJen 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 SillaJen 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 SillaJen, you can compare the effects of market volatilities on Samick Musical and SillaJen 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 SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and SillaJen.
Diversification Opportunities for Samick Musical and SillaJen
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samick and SillaJen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen 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 SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of Samick Musical i.e., Samick Musical and SillaJen go up and down completely randomly.
Pair Corralation between Samick Musical and SillaJen
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.82 times more return on investment than SillaJen. However, Samick Musical Instruments is 1.22 times less risky than SillaJen. It trades about 0.01 of its potential returns per unit of risk. SillaJen is currently generating about -0.08 per unit of risk. If you would invest 124,140 in Samick Musical Instruments on November 7, 2024 and sell it today you would lose (2,540) from holding Samick Musical Instruments or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. SillaJen
Performance |
| Timeline |
| Samick Musical Instr |
| SillaJen |
Samick Musical and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and SillaJen
The main advantage of trading using opposite Samick Musical and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, SillaJen 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 SillaJen will offset losses from the drop in SillaJen's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| SillaJen vs. ADTechnology CoLtd | SillaJen vs. BIT Computer Co | SillaJen vs. Raontech | SillaJen vs. SS TECH |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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