Correlation Between Dongbang Transport and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and Samick Musical 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 Dongbang Transport and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Samick Musical Instruments, you can compare the effects of market volatilities on Dongbang Transport and Samick Musical 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 Dongbang Transport with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Samick Musical.
Diversification Opportunities for Dongbang Transport and Samick Musical
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dongbang and Samick is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Samick Musical Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samick Musical Instr and Dongbang Transport 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 Dongbang Transport Logistics are associated (or correlated) with Samick Musical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samick Musical Instr has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and Samick Musical go up and down completely randomly.
Pair Corralation between Dongbang Transport and Samick Musical
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to under-perform the Samick Musical. In addition to that, Dongbang Transport is 4.28 times more volatile than Samick Musical Instruments. It trades about -0.18 of its total potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.26 per unit of volatility. If you would invest 107,800 in Samick Musical Instruments on September 4, 2024 and sell it today you would earn a total of 3,000 from holding Samick Musical Instruments or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Samick Musical Instruments
Performance |
| Timeline |
| Dongbang Transport |
| Samick Musical Instr |
Dongbang Transport and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Samick Musical
The main advantage of trading using opposite Dongbang Transport and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, Samick Musical 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 Samick Musical will offset losses from the drop in Samick Musical's long position.| Dongbang Transport vs. AptaBio Therapeutics | Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Dream Security co | Dongbang Transport vs. Microfriend |
| Samick Musical vs. Pureun Mutual Savings | Samick Musical vs. Korea Shipbuilding Offshore | Samick Musical vs. Kukdong Oil Chemicals | Samick Musical vs. Sung Bo Chemicals |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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