Correlation Between MS Autotech and Samsung Special
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Samsung Special 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 Samsung Special 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 Samsung Special Purpose, you can compare the effects of market volatilities on MS Autotech and Samsung Special 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 Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Samsung Special.
Diversification Opportunities for MS Autotech and Samsung Special
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 123040 and Samsung is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose 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 Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of MS Autotech i.e., MS Autotech and Samsung Special go up and down completely randomly.
Pair Corralation between MS Autotech and Samsung Special
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to generate 0.54 times more return on investment than Samsung Special. However, MS Autotech CoLtd is 1.86 times less risky than Samsung Special. It trades about -0.04 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about -0.03 per unit of risk. If you would invest 427,467 in MS Autotech CoLtd on October 9, 2024 and sell it today you would lose (181,467) from holding MS Autotech CoLtd or give up 42.45% 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. Samsung Special Purpose
Performance |
| Timeline |
| MS Autotech CoLtd |
| Samsung Special Purpose |
MS Autotech and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Samsung Special
The main advantage of trading using opposite MS Autotech and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Samsung Special 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 Samsung Special will offset losses from the drop in Samsung Special's long position.| MS Autotech vs. KyungIn Electronics Co | MS Autotech vs. ITM Semiconductor Co | MS Autotech vs. Samji Electronics Co | MS Autotech vs. Lotte Chilsung Beverage |
| Samsung Special vs. DC Media CoLtd | Samsung Special vs. JYP Entertainment Corp | Samsung Special vs. Konan Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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