Correlation Between Sam Yang and Hankook Furniture
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Hankook Furniture 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 Hankook Furniture 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 Hankook Furniture Co, you can compare the effects of market volatilities on Sam Yang and Hankook Furniture 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 Hankook Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Hankook Furniture.
Diversification Opportunities for Sam Yang and Hankook Furniture
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sam and Hankook is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Hankook Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankook Furniture 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 Hankook Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankook Furniture has no effect on the direction of Sam Yang i.e., Sam Yang and Hankook Furniture go up and down completely randomly.
Pair Corralation between Sam Yang and Hankook Furniture
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.13 times more return on investment than Hankook Furniture. However, Sam Yang is 2.13 times more volatile than Hankook Furniture Co. It trades about 0.55 of its potential returns per unit of risk. Hankook Furniture Co is currently generating about -0.01 per unit of risk. If you would invest 52,100,000 in Sam Yang Foods on September 25, 2024 and sell it today you would earn a total of 26,200,000 from holding Sam Yang Foods or generate 50.29% 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. Hankook Furniture Co
Performance |
| Timeline |
| Sam Yang Foods |
| Hankook Furniture |
Sam Yang and Hankook Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Hankook Furniture
The main advantage of trading using opposite Sam Yang and Hankook Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Hankook Furniture 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 Hankook Furniture will offset losses from the drop in Hankook Furniture's long position.| Sam Yang vs. Woori Financial Group | Sam Yang vs. Jb Financial | Sam Yang vs. Nh Investment And | Sam Yang vs. Kumho Petro Chemical |
| Hankook Furniture vs. Woori Technology Investment | Hankook Furniture vs. Samsung Card Co | Hankook Furniture vs. Korea Real Estate | Hankook Furniture vs. CHOROKBAEM PANY 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| 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 | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |