Correlation Between Sam Yang and SCI Information
Can any of the company-specific risk be diversified away by investing in both Sam Yang and SCI 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 SCI 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 SCI Information Service, you can compare the effects of market volatilities on Sam Yang and SCI 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 SCI Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and SCI Information.
Diversification Opportunities for Sam Yang and SCI Information
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sam and SCI is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and SCI Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Information Service 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 SCI Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Information Service has no effect on the direction of Sam Yang i.e., Sam Yang and SCI Information go up and down completely randomly.
Pair Corralation between Sam Yang and SCI Information
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.43 times more return on investment than SCI Information. However, Sam Yang is 2.43 times more volatile than SCI Information Service. It trades about 0.19 of its potential returns per unit of risk. SCI Information Service is currently generating about -0.14 per unit of risk. If you would invest 71,100,000 in Sam Yang Foods on November 9, 2024 and sell it today you would earn a total of 9,800,000 from holding Sam Yang Foods or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. SCI Information Service
Performance |
| Timeline |
| Sam Yang Foods |
| SCI Information Service |
Sam Yang and SCI Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and SCI Information
The main advantage of trading using opposite Sam Yang and SCI Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, SCI 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 SCI Information will offset losses from the drop in SCI Information's long position.| Sam Yang vs. Daishin Information Communications | Sam Yang vs. Hyundai Engineering Construction | Sam Yang vs. Hanshin Construction Co | Sam Yang vs. SEOJEON ELECTRIC MACHINERY |
| SCI Information vs. Busan Industrial Co | SCI Information vs. Busan Ind | SCI Information vs. Mirae Asset Daewoo | SCI Information vs. Shinhan WTI Futures |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |