Correlation Between Genie Music and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Genie Music and Samyung Trading 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 Genie Music and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Samyung Trading Co, you can compare the effects of market volatilities on Genie Music and Samyung Trading 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 Genie Music with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Samyung Trading.
Diversification Opportunities for Genie Music and Samyung Trading
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genie and Samyung is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Genie Music 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 Genie Music are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Genie Music i.e., Genie Music and Samyung Trading go up and down completely randomly.
Pair Corralation between Genie Music and Samyung Trading
Assuming the 90 days trading horizon Genie Music is expected to under-perform the Samyung Trading. In addition to that, Genie Music is 5.67 times more volatile than Samyung Trading Co. It trades about -0.24 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about 0.22 per unit of volatility. If you would invest 1,274,000 in Samyung Trading Co on September 1, 2024 and sell it today you would earn a total of 26,000 from holding Samyung Trading Co or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Music vs. Samyung Trading Co
Performance |
| Timeline |
| Genie Music |
| Samyung Trading |
Genie Music and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and Samyung Trading
The main advantage of trading using opposite Genie Music and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Genie Music vs. AfreecaTV Co | Genie Music vs. Seegene | Genie Music vs. SS TECH | Genie Music vs. Busan Industrial Co |
| Samyung Trading vs. Dongwon Metal Co | Samyung Trading vs. Shinhan Inverse Copper | Samyung Trading vs. Alton Sports CoLtd | Samyung Trading vs. Daejung Chemicals Metals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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