Correlation Between Samick Musical and CU Tech
Can any of the company-specific risk be diversified away by investing in both Samick Musical and CU 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 CU 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 CU Tech Corp, you can compare the effects of market volatilities on Samick Musical and CU 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 CU Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and CU Tech.
Diversification Opportunities for Samick Musical and CU Tech
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samick and 376290 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and CU Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Tech Corp 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 CU Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Tech Corp has no effect on the direction of Samick Musical i.e., Samick Musical and CU Tech go up and down completely randomly.
Pair Corralation between Samick Musical and CU Tech
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.48 times more return on investment than CU Tech. However, Samick Musical Instruments is 2.1 times less risky than CU Tech. It trades about 0.07 of its potential returns per unit of risk. CU Tech Corp is currently generating about -0.15 per unit of risk. If you would invest 109,800 in Samick Musical Instruments on August 27, 2024 and sell it today you would earn a total of 1,200 from holding Samick Musical Instruments or generate 1.09% 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. CU Tech Corp
Performance |
| Timeline |
| Samick Musical Instr |
| CU Tech Corp |
Samick Musical and CU Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and CU Tech
The main advantage of trading using opposite Samick Musical and CU Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, CU 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 CU Tech will offset losses from the drop in CU Tech's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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