Correlation Between Sam Yang and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Sam Yang and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Inzi Display.
Diversification Opportunities for Sam Yang and Inzi Display
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sam and Inzi is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Sam Yang i.e., Sam Yang and Inzi Display go up and down completely randomly.
Pair Corralation between Sam Yang and Inzi Display
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 1.69 times more return on investment than Inzi Display. However, Sam Yang is 1.69 times more volatile than Inzi Display CoLtd. It trades about 0.12 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.03 per unit of risk. If you would invest 20,633,700 in Sam Yang Foods on September 2, 2024 and sell it today you would earn a total of 31,266,300 from holding Sam Yang Foods or generate 151.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Inzi Display CoLtd
Performance |
| Timeline |
| Sam Yang Foods |
| Inzi Display CoLtd |
Sam Yang and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Inzi Display
The main advantage of trading using opposite Sam Yang and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display'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 |
| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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