Correlation Between MS Autotech and Seoul Semiconductor
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Seoul Semiconductor 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 MS Autotech and Seoul Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Seoul Semiconductor Co, you can compare the effects of market volatilities on MS Autotech and Seoul Semiconductor 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 MS Autotech with a short position of Seoul Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Seoul Semiconductor.
Diversification Opportunities for MS Autotech and Seoul Semiconductor
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 123040 and Seoul is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Seoul Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Semiconductor and MS 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 MS Autotech CoLtd are associated (or correlated) with Seoul Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Semiconductor has no effect on the direction of MS Autotech i.e., MS Autotech and Seoul Semiconductor go up and down completely randomly.
Pair Corralation between MS Autotech and Seoul Semiconductor
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to under-perform the Seoul Semiconductor. In addition to that, MS Autotech is 1.04 times more volatile than Seoul Semiconductor Co. It trades about -0.04 of its total potential returns per unit of risk. Seoul Semiconductor Co is currently generating about -0.03 per unit of volatility. If you would invest 1,064,464 in Seoul Semiconductor Co on September 4, 2024 and sell it today you would lose (361,464) from holding Seoul Semiconductor Co or give up 33.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Seoul Semiconductor Co
Performance |
| Timeline |
| MS Autotech CoLtd |
| Seoul Semiconductor |
MS Autotech and Seoul Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Seoul Semiconductor
The main advantage of trading using opposite MS Autotech and Seoul Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Seoul Semiconductor 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 Seoul Semiconductor will offset losses from the drop in Seoul Semiconductor's long position.| MS Autotech vs. Korea Real Estate | MS Autotech vs. Busan Industrial Co | MS Autotech vs. UNISEM Co | MS Autotech vs. RPBio Inc |
| Seoul Semiconductor vs. Dongsin Engineering Construction | Seoul Semiconductor vs. Doosan Fuel Cell | Seoul Semiconductor vs. Daishin Balance 1 | Seoul Semiconductor vs. Total Soft Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |