Correlation Between Sungchang Autotech and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech 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 Sungchang Autotech and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungchang Autotech Co and Samick Musical Instruments, you can compare the effects of market volatilities on Sungchang Autotech 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 Sungchang Autotech with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and Samick Musical.
Diversification Opportunities for Sungchang Autotech and Samick Musical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sungchang and Samick is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech Co 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 Sungchang Autotech 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 Sungchang Autotech Co 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 Sungchang Autotech i.e., Sungchang Autotech and Samick Musical go up and down completely randomly.
Pair Corralation between Sungchang Autotech and Samick Musical
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to under-perform the Samick Musical. In addition to that, Sungchang Autotech is 2.03 times more volatile than Samick Musical Instruments. It trades about -0.01 of its total potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.07 per unit of volatility. If you would invest 109,400 in Samick Musical Instruments on September 21, 2024 and sell it today you would earn a total of 11,000 from holding Samick Musical Instruments or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungchang Autotech Co vs. Samick Musical Instruments
Performance |
| Timeline |
| Sungchang Autotech |
| Samick Musical Instr |
Sungchang Autotech and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungchang Autotech and Samick Musical
The main advantage of trading using opposite Sungchang Autotech and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech 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.| Sungchang Autotech vs. Duksan Hi Metal | Sungchang Autotech vs. Youngsin Metal Industrial | Sungchang Autotech vs. Heungkuk Metaltech CoLtd | Sungchang Autotech vs. Display Tech Co |
| Samick Musical vs. Foodnamoo | Samick Musical vs. Sempio Foods Co | Samick Musical vs. Hyundai Green Food | Samick Musical vs. Korea Information Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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