Correlation Between Stic Investments and Samyoung M
Can any of the company-specific risk be diversified away by investing in both Stic Investments and Samyoung M 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 Stic Investments and Samyoung M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Samyoung M Tek Co, you can compare the effects of market volatilities on Stic Investments and Samyoung M 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 Stic Investments with a short position of Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Samyoung M.
Diversification Opportunities for Stic Investments and Samyoung M
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stic and Samyoung is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek and Stic Investments 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 Stic Investments are associated (or correlated) with Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of Stic Investments i.e., Stic Investments and Samyoung M go up and down completely randomly.
Pair Corralation between Stic Investments and Samyoung M
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.61 times more return on investment than Samyoung M. However, Stic Investments is 1.65 times less risky than Samyoung M. It trades about 0.44 of its potential returns per unit of risk. Samyoung M Tek Co is currently generating about 0.0 per unit of risk. If you would invest 715,000 in Stic Investments on September 14, 2024 and sell it today you would earn a total of 148,000 from holding Stic Investments or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. Samyoung M Tek Co
Performance |
| Timeline |
| Stic Investments |
| Samyoung M Tek |
Stic Investments and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and Samyoung M
The main advantage of trading using opposite Stic Investments and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.| Stic Investments vs. Cube Entertainment | Stic Investments vs. Dreamus Company | Stic Investments vs. LG Energy Solution | Stic Investments vs. Dongwon System |
| Samyoung M vs. Golden Bridge Investment | Samyoung M vs. LB Investment | Samyoung M vs. Stic Investments | Samyoung M vs. Jin Air 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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