Correlation Between Sam Yang and Choil Aluminum
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Choil Aluminum 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 Choil Aluminum 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 Choil Aluminum, you can compare the effects of market volatilities on Sam Yang and Choil Aluminum 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 Choil Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Choil Aluminum.
Diversification Opportunities for Sam Yang and Choil Aluminum
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sam and Choil is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Choil Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choil Aluminum 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 Choil Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choil Aluminum has no effect on the direction of Sam Yang i.e., Sam Yang and Choil Aluminum go up and down completely randomly.
Pair Corralation between Sam Yang and Choil Aluminum
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.21 times more return on investment than Choil Aluminum. However, Sam Yang is 2.21 times more volatile than Choil Aluminum. It trades about 0.18 of its potential returns per unit of risk. Choil Aluminum is currently generating about 0.13 per unit of risk. If you would invest 68,700,000 in Sam Yang Foods on October 14, 2024 and sell it today you would earn a total of 6,300,000 from holding Sam Yang Foods or generate 9.17% 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. Choil Aluminum
Performance |
| Timeline |
| Sam Yang Foods |
| Choil Aluminum |
Sam Yang and Choil Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Choil Aluminum
The main advantage of trading using opposite Sam Yang and Choil Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Choil Aluminum 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 Choil Aluminum will offset losses from the drop in Choil Aluminum's long position.| Sam Yang vs. Sempio Foods Co | Sam Yang vs. CJ Seafood Corp | Sam Yang vs. FoodNamoo | Sam Yang vs. Youl Chon Chemical |
| Choil Aluminum vs. Samyang Foods Co | Choil Aluminum vs. Sam Yang Foods | Choil Aluminum vs. Seoam Machinery Industry | Choil Aluminum vs. Sungdo Engineering Construction |
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 CEOs Directory module to screen CEOs from public companies around the world.
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