Correlation Between RF Materials and Samick Musical
Can any of the company-specific risk be diversified away by investing in both RF Materials 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 RF Materials and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RF Materials Co and Samick Musical Instruments, you can compare the effects of market volatilities on RF Materials 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 RF Materials with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of RF Materials and Samick Musical.
Diversification Opportunities for RF Materials and Samick Musical
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 327260 and Samick is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding RF Materials 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 RF Materials 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 RF Materials 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 RF Materials i.e., RF Materials and Samick Musical go up and down completely randomly.
Pair Corralation between RF Materials and Samick Musical
Assuming the 90 days trading horizon RF Materials Co is expected to under-perform the Samick Musical. In addition to that, RF Materials is 2.44 times more volatile than Samick Musical Instruments. It trades about -0.08 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 107,549 in Samick Musical Instruments on September 3, 2024 and sell it today you would earn a total of 3,251 from holding Samick Musical Instruments or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RF Materials Co vs. Samick Musical Instruments
Performance |
| Timeline |
| RF Materials |
| Samick Musical Instr |
RF Materials and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RF Materials and Samick Musical
The main advantage of trading using opposite RF Materials and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RF Materials 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.| RF Materials vs. SK Hynix | RF Materials vs. LX Semicon Co | RF Materials vs. Tokai Carbon Korea | RF Materials vs. People Technology |
| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
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.
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