Correlation Between Sam Yang and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Sungchang Autotech 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 Sungchang Autotech 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 Sungchang Autotech Co, you can compare the effects of market volatilities on Sam Yang and Sungchang Autotech 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 Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Sungchang Autotech.
Diversification Opportunities for Sam Yang and Sungchang Autotech
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sam and Sungchang is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech 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 Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Sam Yang i.e., Sam Yang and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Sam Yang and Sungchang Autotech
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 2.62 times more return on investment than Sungchang Autotech. However, Sam Yang is 2.62 times more volatile than Sungchang Autotech Co. It trades about 0.11 of its potential returns per unit of risk. Sungchang Autotech Co is currently generating about 0.11 per unit of risk. If you would invest 72,900,000 in Sam Yang Foods on October 16, 2024 and sell it today you would earn a total of 3,200,000 from holding Sam Yang Foods or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sam Yang Foods vs. Sungchang Autotech Co
Performance |
| Timeline |
| Sam Yang Foods |
| Sungchang Autotech |
Sam Yang and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Sungchang Autotech
The main advantage of trading using opposite Sam Yang and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Sam Yang vs. LG Household Healthcare | Sam Yang vs. Daesung Hi Tech Co | Sam Yang vs. Jinro Distillers Co | Sam Yang vs. Samick Musical Instruments |
| Sungchang Autotech vs. Dongbang Transport Logistics | Sungchang Autotech vs. Lotte Non Life Insurance | Sungchang Autotech vs. Genie Music | Sungchang Autotech vs. Sangsin Energy Display |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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