Correlation Between Sam Yang and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on Sam Yang and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Mobile Appliance.
Diversification Opportunities for Sam Yang and Mobile Appliance
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and Mobile is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of Sam Yang i.e., Sam Yang and Mobile Appliance go up and down completely randomly.
Pair Corralation between Sam Yang and Mobile Appliance
Assuming the 90 days trading horizon Sam Yang is expected to generate 1.12 times less return on investment than Mobile Appliance. In addition to that, Sam Yang is 1.56 times more volatile than Mobile Appliance. It trades about 0.16 of its total potential returns per unit of risk. Mobile Appliance is currently generating about 0.28 per unit of volatility. If you would invest 201,000 in Mobile Appliance on October 12, 2024 and sell it today you would earn a total of 20,000 from holding Mobile Appliance or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Mobile Appliance
Performance |
| Timeline |
| Sam Yang Foods |
| Mobile Appliance |
Sam Yang and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Mobile Appliance
The main advantage of trading using opposite Sam Yang and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance's long position.| Sam Yang vs. Daishin Information Communications | Sam Yang vs. Hanjin Transportation Co | Sam Yang vs. Iljin Display | Sam Yang vs. Korea Alcohol Industrial |
| Mobile Appliance vs. CKH Food Health | Mobile Appliance vs. Shinsegae Food | Mobile Appliance vs. Samyang Foods Co | Mobile Appliance 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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