Correlation Between PH Tech and Samick Musical
Can any of the company-specific risk be diversified away by investing in both PH Tech 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 PH Tech and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Samick Musical Instruments, you can compare the effects of market volatilities on PH Tech 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 PH Tech with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Samick Musical.
Diversification Opportunities for PH Tech and Samick Musical
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 239890 and Samick is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech 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 PH Tech 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 PH Tech 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 PH Tech i.e., PH Tech and Samick Musical go up and down completely randomly.
Pair Corralation between PH Tech and Samick Musical
Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the Samick Musical. In addition to that, PH Tech is 2.92 times more volatile than Samick Musical Instruments. It trades about -0.13 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Samick Musical Instruments
Performance |
| Timeline |
| PH Tech |
| Samick Musical Instr |
PH Tech and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Samick Musical
The main advantage of trading using opposite PH Tech and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech 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.The idea behind PH Tech Co and Samick Musical Instruments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |