Correlation Between Sam Yang and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food, you can compare the effects of market volatilities on Sam Yang and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Shinsegae Food.
Diversification Opportunities for Sam Yang and Shinsegae Food
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sam and Shinsegae is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Sam Yang i.e., Sam Yang and Shinsegae Food go up and down completely randomly.
Pair Corralation between Sam Yang and Shinsegae Food
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.33 times more return on investment than Shinsegae Food. However, Sam Yang is 2.33 times more volatile than Shinsegae Food. It trades about 0.16 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.13 per unit of risk. If you would invest 74,845,900 in Sam Yang Foods on December 11, 2024 and sell it today you would earn a total of 14,854,100 from holding Sam Yang Foods or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Shinsegae Food
Performance |
| Timeline |
| Sam Yang Foods |
| Shinsegae Food |
Sam Yang and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Shinsegae Food
The main advantage of trading using opposite Sam Yang and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| Sam Yang vs. Korea Air Svc | Sam Yang vs. ITM Semiconductor Co | Sam Yang vs. Seers Technology | Sam Yang vs. Hotel Shilla Co |
| Shinsegae Food vs. Daewoo Electronic Components | Shinsegae Food vs. Neungyule Education | Shinsegae Food vs. GS Engineering Construction | Shinsegae Food vs. Tuksu Engineering ConstructionLtd |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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