Correlation Between Samick Musical and PH Tech
Can any of the company-specific risk be diversified away by investing in both Samick Musical and PH Tech 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 PH Tech 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 PH Tech Co, you can compare the effects of market volatilities on Samick Musical and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and PH Tech.
Diversification Opportunities for Samick Musical and PH Tech
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samick and 239890 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Samick Musical i.e., Samick Musical and PH Tech go up and down completely randomly.
Pair Corralation between Samick Musical and PH Tech
Assuming the 90 days trading horizon Samick Musical is expected to generate 14.22 times less return on investment than PH Tech. But when comparing it to its historical volatility, Samick Musical Instruments is 5.72 times less risky than PH Tech. It trades about 0.07 of its potential returns per unit of risk. PH Tech Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 697,000 in PH Tech Co on August 30, 2024 and sell it today you would earn a total of 118,000 from holding PH Tech Co or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. PH Tech Co
Performance |
| Timeline |
| Samick Musical Instr |
| PH Tech |
Samick Musical and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and PH Tech
The main advantage of trading using opposite Samick Musical and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Samick Musical vs. Iljin Display | Samick Musical vs. Samsung Life Insurance | Samick Musical vs. JYP Entertainment Corp | Samick Musical vs. CG Hi Tech |
| PH Tech vs. Taeyang Metal Industrial | PH Tech vs. National Plastic Co | PH Tech vs. Samick Musical Instruments | PH Tech vs. Kukil Metal 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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