Correlation Between Sam Yang and Daishin Information
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Daishin Information 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 Daishin Information 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 Daishin Information Communications, you can compare the effects of market volatilities on Sam Yang and Daishin Information 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 Daishin Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Daishin Information.
Diversification Opportunities for Sam Yang and Daishin Information
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sam and Daishin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Daishin Information Communicat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Information 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 Daishin Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Information has no effect on the direction of Sam Yang i.e., Sam Yang and Daishin Information go up and down completely randomly.
Pair Corralation between Sam Yang and Daishin Information
Assuming the 90 days trading horizon Sam Yang Foods is expected to under-perform the Daishin Information. But the stock apears to be less risky and, when comparing its historical volatility, Sam Yang Foods is 1.19 times less risky than Daishin Information. The stock trades about -0.21 of its potential returns per unit of risk. The Daishin Information Communications is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 109,400 in Daishin Information Communications on November 4, 2024 and sell it today you would lose (6,400) from holding Daishin Information Communications or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Daishin Information Communicat
Performance |
| Timeline |
| Sam Yang Foods |
| Daishin Information |
Sam Yang and Daishin Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Daishin Information
The main advantage of trading using opposite Sam Yang and Daishin Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Daishin Information 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 Daishin Information will offset losses from the drop in Daishin Information's long position.| Sam Yang vs. Nice Information Telecommunication | Sam Yang vs. Kukil Metal Co | Sam Yang vs. Hanjin Transportation Co | Sam Yang vs. Sangsin Energy Display |
| Daishin Information vs. SV Investment | Daishin Information vs. Vitzro Tech Co | Daishin Information vs. Leaders Technology Investment | Daishin Information vs. SS TECH |
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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