Correlation Between Sam Yang and J Steel
Can any of the company-specific risk be diversified away by investing in both Sam Yang and J Steel 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 J Steel 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 J Steel Co, you can compare the effects of market volatilities on Sam Yang and J Steel 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 J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and J Steel.
Diversification Opportunities for Sam Yang and J Steel
Excellent diversification
The 3 months correlation between Sam and 023440 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel 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 J Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Steel has no effect on the direction of Sam Yang i.e., Sam Yang and J Steel go up and down completely randomly.
Pair Corralation between Sam Yang and J Steel
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.77 times more return on investment than J Steel. However, Sam Yang Foods is 1.3 times less risky than J Steel. It trades about 0.13 of its potential returns per unit of risk. J Steel Co is currently generating about -0.03 per unit of risk. If you would invest 11,949,900 in Sam Yang Foods on October 29, 2024 and sell it today you would earn a total of 59,050,100 from holding Sam Yang Foods or generate 494.15% 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. J Steel Co
Performance |
| Timeline |
| Sam Yang Foods |
| J Steel |
Sam Yang and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and J Steel
The main advantage of trading using opposite Sam Yang and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, J Steel 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 J Steel will offset losses from the drop in J Steel's long position.| Sam Yang vs. Taegu Broadcasting | Sam Yang vs. Korea Information Engineering | Sam Yang vs. DataSolution | Sam Yang vs. Daou Data Corp |
| J Steel vs. DONGKUK TED METAL | J Steel vs. BIT Computer Co | J Steel vs. Guyoung Technology Co | J Steel vs. Miwon Chemicals 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |