Correlation Between Sam Yang and Lotte Chilsung
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Lotte Chilsung 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 Lotte Chilsung 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 Lotte Chilsung Beverage, you can compare the effects of market volatilities on Sam Yang and Lotte Chilsung 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 Lotte Chilsung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Lotte Chilsung.
Diversification Opportunities for Sam Yang and Lotte Chilsung
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and Lotte is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Lotte Chilsung Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Chilsung Beverage 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 Lotte Chilsung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Chilsung Beverage has no effect on the direction of Sam Yang i.e., Sam Yang and Lotte Chilsung go up and down completely randomly.
Pair Corralation between Sam Yang and Lotte Chilsung
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.29 times more return on investment than Lotte Chilsung. However, Sam Yang is 2.29 times more volatile than Lotte Chilsung Beverage. It trades about 0.05 of its potential returns per unit of risk. Lotte Chilsung Beverage is currently generating about -0.13 per unit of risk. If you would invest 48,650,000 in Sam Yang Foods on August 28, 2024 and sell it today you would earn a total of 3,450,000 from holding Sam Yang Foods or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Lotte Chilsung Beverage
Performance |
| Timeline |
| Sam Yang Foods |
| Lotte Chilsung Beverage |
Sam Yang and Lotte Chilsung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Lotte Chilsung
The main advantage of trading using opposite Sam Yang and Lotte Chilsung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Lotte Chilsung 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 Lotte Chilsung will offset losses from the drop in Lotte Chilsung's long position.| Sam Yang vs. Lotte Data Communication | Sam Yang vs. Woorim Machinery Co | Sam Yang vs. Jeong Moon Information | Sam Yang vs. GS Engineering Construction |
| Lotte Chilsung vs. AptaBio Therapeutics | Lotte Chilsung vs. Daewoo SBI SPAC | Lotte Chilsung vs. Dream Security co | Lotte Chilsung 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |