Correlation Between Sam Yang and National Plastic
Can any of the company-specific risk be diversified away by investing in both Sam Yang and National Plastic 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 Sam Yang and National Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sam Yang Foods and National Plastic Co, you can compare the effects of market volatilities on Sam Yang and National Plastic 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 Sam Yang with a short position of National Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and National Plastic.
Diversification Opportunities for Sam Yang and National Plastic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sam and National is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and National Plastic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Plastic and Sam Yang 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 Sam Yang Foods are associated (or correlated) with National Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Plastic has no effect on the direction of Sam Yang i.e., Sam Yang and National Plastic go up and down completely randomly.
Pair Corralation between Sam Yang and National Plastic
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.88 times more return on investment than National Plastic. However, Sam Yang is 2.88 times more volatile than National Plastic Co. It trades about 0.13 of its potential returns per unit of risk. National Plastic Co is currently generating about -0.04 per unit of risk. If you would invest 11,812,300 in Sam Yang Foods on September 4, 2024 and sell it today you would earn a total of 43,387,700 from holding Sam Yang Foods or generate 367.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. National Plastic Co
Performance |
| Timeline |
| Sam Yang Foods |
| National Plastic |
Sam Yang and National Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and National Plastic
The main advantage of trading using opposite Sam Yang and National Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, National Plastic 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 National Plastic will offset losses from the drop in National Plastic's long position.| Sam Yang vs. LG Display | Sam Yang vs. Hyundai Motor | Sam Yang vs. Hyundai Motor Co | Sam Yang vs. Hyundai Motor Co |
| National Plastic vs. LG Uplus | National Plastic vs. ASTORY CoLtd | National Plastic vs. Industrial Bank | National Plastic vs. AnterogenCoLtd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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