Correlation Between Sam Yang and Korea Aerospace
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Korea Aerospace 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 Korea Aerospace 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 Korea Aerospace Industries, you can compare the effects of market volatilities on Sam Yang and Korea Aerospace 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 Korea Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Korea Aerospace.
Diversification Opportunities for Sam Yang and Korea Aerospace
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sam and Korea is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Korea Aerospace Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Aerospace Indu 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 Korea Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Aerospace Indu has no effect on the direction of Sam Yang i.e., Sam Yang and Korea Aerospace go up and down completely randomly.
Pair Corralation between Sam Yang and Korea Aerospace
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 1.57 times more return on investment than Korea Aerospace. However, Sam Yang is 1.57 times more volatile than Korea Aerospace Industries. It trades about 0.12 of its potential returns per unit of risk. Korea Aerospace Industries is currently generating about 0.02 per unit of risk. If you would invest 12,127,700 in Sam Yang Foods on September 14, 2024 and sell it today you would earn a total of 55,972,300 from holding Sam Yang Foods or generate 461.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sam Yang Foods vs. Korea Aerospace Industries
Performance |
| Timeline |
| Sam Yang Foods |
| Korea Aerospace Indu |
Sam Yang and Korea Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Korea Aerospace
The main advantage of trading using opposite Sam Yang and Korea Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Korea Aerospace 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 Korea Aerospace will offset losses from the drop in Korea Aerospace's long position.| Sam Yang vs. Korea New Network | Sam Yang vs. ICD Co | Sam Yang vs. DYPNF CoLtd | Sam Yang vs. Solution Advanced Technology |
| Korea Aerospace vs. Sam Yang Foods | Korea Aerospace vs. Jb Financial | Korea Aerospace vs. Korean Reinsurance Co | Korea Aerospace vs. Haitai Confectionery Foods |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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