Correlation Between Sangsangin Investment and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Sam Yang 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 Sangsangin Investment and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Sam Yang Foods, you can compare the effects of market volatilities on Sangsangin Investment and Sam Yang 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 Sangsangin Investment with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Sam Yang.
Diversification Opportunities for Sangsangin Investment and Sam Yang
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsangin and Sam is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Sam Yang Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Yang Foods and Sangsangin 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 Sangsangin Investment Securities are associated (or correlated) with Sam Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Yang Foods has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Sam Yang go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Sam Yang
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Sam Yang. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 2.69 times less risky than Sam Yang. The stock trades about -0.02 of its potential returns per unit of risk. The Sam Yang Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 51,200,000 in Sam Yang Foods on August 31, 2024 and sell it today you would earn a total of 700,000 from holding Sam Yang Foods or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Sam Yang Foods
Performance |
| Timeline |
| Sangsangin Investment |
| Sam Yang Foods |
Sangsangin Investment and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Sam Yang
The main advantage of trading using opposite Sangsangin Investment and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Sam Yang 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 Sam Yang will offset losses from the drop in Sam Yang's long position.| Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group |
| Sam Yang vs. Korea Real Estate | Sam Yang vs. Korea Ratings Co | Sam Yang vs. IQuest Co | Sam Yang vs. Wonbang Tech Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |