Correlation Between Sam Yang and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Sam Yang and PLAYWITH 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 PLAYWITH 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 PLAYWITH, you can compare the effects of market volatilities on Sam Yang and PLAYWITH 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 PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and PLAYWITH.
Diversification Opportunities for Sam Yang and PLAYWITH
Excellent diversification
The 3 months correlation between Sam and PLAYWITH is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH 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 PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Sam Yang i.e., Sam Yang and PLAYWITH go up and down completely randomly.
Pair Corralation between Sam Yang and PLAYWITH
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.69 times more return on investment than PLAYWITH. However, Sam Yang Foods is 1.45 times less risky than PLAYWITH. It trades about 0.05 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.24 per unit of risk. If you would invest 48,900,000 in Sam Yang Foods on September 2, 2024 and sell it today you would earn a total of 3,000,000 from holding Sam Yang Foods or generate 6.13% 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. PLAYWITH
Performance |
| Timeline |
| Sam Yang Foods |
| PLAYWITH |
Sam Yang and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and PLAYWITH
The main advantage of trading using opposite Sam Yang and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Sam Yang vs. Korea Real Estate | Sam Yang vs. Korea Ratings Co | Sam Yang vs. IQuest Co | Sam Yang vs. Wonbang Tech 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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