Correlation Between Sam Yang and Daewon Media
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Daewon Media 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 Daewon Media 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 Daewon Media Co, you can compare the effects of market volatilities on Sam Yang and Daewon Media 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 Daewon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Daewon Media.
Diversification Opportunities for Sam Yang and Daewon Media
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and Daewon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Daewon Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewon Media 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 Daewon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewon Media has no effect on the direction of Sam Yang i.e., Sam Yang and Daewon Media go up and down completely randomly.
Pair Corralation between Sam Yang and Daewon Media
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.98 times more return on investment than Daewon Media. However, Sam Yang is 2.98 times more volatile than Daewon Media Co. It trades about 0.0 of its potential returns per unit of risk. Daewon Media Co is currently generating about -0.25 per unit of risk. If you would invest 53,800,000 in Sam Yang Foods on August 25, 2024 and sell it today you would lose (600,000) from holding Sam Yang Foods or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Daewon Media Co
Performance |
| Timeline |
| Sam Yang Foods |
| Daewon Media |
Sam Yang and Daewon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Daewon Media
The main advantage of trading using opposite Sam Yang and Daewon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Daewon Media 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 Daewon Media will offset losses from the drop in Daewon Media's long position.| Sam Yang vs. AptaBio Therapeutics | Sam Yang vs. Daewoo SBI SPAC | Sam Yang vs. Dream Security co | Sam Yang vs. Microfriend |
| Daewon Media vs. Hankuk Steel Wire | Daewon Media vs. Korea Air Svc | Daewon Media vs. Seah Steel Corp | Daewon Media vs. Sam Yang 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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