Correlation Between Samick Musical and Cuckoo Homesys
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Cuckoo Homesys 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 Samick Musical and Cuckoo Homesys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samick Musical Instruments and Cuckoo Homesys Co, you can compare the effects of market volatilities on Samick Musical and Cuckoo Homesys 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 Samick Musical with a short position of Cuckoo Homesys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Cuckoo Homesys.
Diversification Opportunities for Samick Musical and Cuckoo Homesys
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samick and Cuckoo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Cuckoo Homesys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Homesys and Samick Musical 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 Samick Musical Instruments are associated (or correlated) with Cuckoo Homesys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Homesys has no effect on the direction of Samick Musical i.e., Samick Musical and Cuckoo Homesys go up and down completely randomly.
Pair Corralation between Samick Musical and Cuckoo Homesys
Assuming the 90 days trading horizon Samick Musical Instruments is expected to generate 0.75 times more return on investment than Cuckoo Homesys. However, Samick Musical Instruments is 1.33 times less risky than Cuckoo Homesys. It trades about 0.13 of its potential returns per unit of risk. Cuckoo Homesys Co is currently generating about -0.05 per unit of risk. If you would invest 106,700 in Samick Musical Instruments on September 23, 2024 and sell it today you would earn a total of 11,600 from holding Samick Musical Instruments or generate 10.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samick Musical Instruments vs. Cuckoo Homesys Co
Performance |
Timeline |
Samick Musical Instr |
Cuckoo Homesys |
Samick Musical and Cuckoo Homesys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samick Musical and Cuckoo Homesys
The main advantage of trading using opposite Samick Musical and Cuckoo Homesys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Cuckoo Homesys 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 Cuckoo Homesys will offset losses from the drop in Cuckoo Homesys' long position.Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Wonbang Tech Co | Samick Musical vs. Busan Industrial Co | Samick Musical vs. Busan Ind |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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