Correlation Between LB Investment and Samick Musical
Can any of the company-specific risk be diversified away by investing in both LB Investment 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 LB Investment and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Investment and Samick Musical Instruments, you can compare the effects of market volatilities on LB Investment 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 LB Investment with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Investment and Samick Musical.
Diversification Opportunities for LB Investment and Samick Musical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 309960 and Samick is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LB Investment 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 LB Investment 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 LB Investment 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 LB Investment i.e., LB Investment and Samick Musical go up and down completely randomly.
Pair Corralation between LB Investment and Samick Musical
Assuming the 90 days trading horizon LB Investment is expected to under-perform the Samick Musical. In addition to that, LB Investment is 2.14 times more volatile than Samick Musical Instruments. It trades about -0.02 of its total potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.02 per unit of volatility. If you would invest 115,447 in Samick Musical Instruments on November 27, 2024 and sell it today you would earn a total of 9,753 from holding Samick Musical Instruments or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.87% |
| Values | Daily Returns |
LB Investment vs. Samick Musical Instruments
Performance |
| Timeline |
| LB Investment |
| Samick Musical Instr |
LB Investment and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Investment and Samick Musical
The main advantage of trading using opposite LB Investment and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Investment 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.| LB Investment vs. Dongil Metal Co | LB Investment vs. Industrial Bank | LB Investment vs. Finebesteel | LB Investment vs. Songwon Industrial Co |
| Samick Musical vs. Mobile Appliance | Samick Musical vs. Echomarketing CoLtd | Samick Musical vs. GS Retail Co | Samick Musical vs. Lotte Data Communication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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