Correlation Between Husteel and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Husteel 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 Husteel and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husteel and Samick Musical Instruments, you can compare the effects of market volatilities on Husteel 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 Husteel with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husteel and Samick Musical.
Diversification Opportunities for Husteel and Samick Musical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Husteel and Samick is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Husteel 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 Husteel 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 Husteel 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 Husteel i.e., Husteel and Samick Musical go up and down completely randomly.
Pair Corralation between Husteel and Samick Musical
Assuming the 90 days trading horizon Husteel is expected to generate 1.57 times more return on investment than Samick Musical. However, Husteel is 1.57 times more volatile than Samick Musical Instruments. It trades about 0.1 of its potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.15 per unit of risk. If you would invest 419,500 in Husteel on October 24, 2024 and sell it today you would earn a total of 63,500 from holding Husteel or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Husteel vs. Samick Musical Instruments
Performance |
| Timeline |
| Husteel |
| Samick Musical Instr |
Husteel and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Husteel and Samick Musical
The main advantage of trading using opposite Husteel and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husteel 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.| Husteel vs. RF Materials Co | Husteel vs. Lotte Data Communication | Husteel vs. Korea Information Communications | Husteel vs. LS Materials |
| Samick Musical vs. Hankuk Steel Wire | Samick Musical vs. Husteel | Samick Musical vs. INSUN Environmental New | Samick Musical vs. DONGKUK TED METAL |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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