Correlation Between Sam Yang and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Sam Yang and CJ Seafood 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 CJ Seafood 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 CJ Seafood Corp, you can compare the effects of market volatilities on Sam Yang and CJ Seafood 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 CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and CJ Seafood.
Diversification Opportunities for Sam Yang and CJ Seafood
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and 011155 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp 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 CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of Sam Yang i.e., Sam Yang and CJ Seafood go up and down completely randomly.
Pair Corralation between Sam Yang and CJ Seafood
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.56 times more return on investment than CJ Seafood. However, Sam Yang is 2.56 times more volatile than CJ Seafood Corp. It trades about -0.02 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about -0.12 per unit of risk. If you would invest 54,800,000 in Sam Yang Foods on August 27, 2024 and sell it today you would lose (2,700,000) from holding Sam Yang Foods or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. CJ Seafood Corp
Performance |
| Timeline |
| Sam Yang Foods |
| CJ Seafood Corp |
Sam Yang and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and CJ Seafood
The main advantage of trading using opposite Sam Yang and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood'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 |
| CJ Seafood vs. Busan Industrial Co | CJ Seafood vs. Busan Ind | CJ Seafood vs. Mirae Asset Daewoo | CJ Seafood vs. UNISEM 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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