Correlation Between Sam Yang and Daehan Steel
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Daehan Steel 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 Daehan Steel 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 Daehan Steel, you can compare the effects of market volatilities on Sam Yang and Daehan Steel 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 Daehan Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Daehan Steel.
Diversification Opportunities for Sam Yang and Daehan Steel
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sam and Daehan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Daehan Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Steel 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 Daehan Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Steel has no effect on the direction of Sam Yang i.e., Sam Yang and Daehan Steel go up and down completely randomly.
Pair Corralation between Sam Yang and Daehan Steel
Assuming the 90 days trading horizon Sam Yang Foods is expected to under-perform the Daehan Steel. In addition to that, Sam Yang is 1.52 times more volatile than Daehan Steel. It trades about -0.23 of its total potential returns per unit of risk. Daehan Steel is currently generating about 0.0 per unit of volatility. If you would invest 1,664,000 in Daehan Steel on October 25, 2024 and sell it today you would lose (2,000) from holding Daehan Steel or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Daehan Steel
Performance |
| Timeline |
| Sam Yang Foods |
| Daehan Steel |
Sam Yang and Daehan Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Daehan Steel
The main advantage of trading using opposite Sam Yang and Daehan Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Daehan Steel 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 Daehan Steel will offset losses from the drop in Daehan Steel's long position.| Sam Yang vs. Daishin Information Communications | Sam Yang vs. Namhae Chemical | Sam Yang vs. SH Energy Chemical | Sam Yang vs. Mobile Appliance |
| Daehan Steel vs. Wireless Power Amplifier | Daehan Steel vs. Ssangyong Information Communication | Daehan Steel vs. Shinil Industrial Co | Daehan Steel vs. Korea Air Svc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets |