Correlation Between Sam Yang and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Hanwha Life 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 Hanwha Life 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 Hanwha Life Insurance, you can compare the effects of market volatilities on Sam Yang and Hanwha Life 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 Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Hanwha Life.
Diversification Opportunities for Sam Yang and Hanwha Life
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sam and Hanwha is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Hanwha Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Life Insurance 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 Hanwha Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Life Insurance has no effect on the direction of Sam Yang i.e., Sam Yang and Hanwha Life go up and down completely randomly.
Pair Corralation between Sam Yang and Hanwha Life
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 1.99 times more return on investment than Hanwha Life. However, Sam Yang is 1.99 times more volatile than Hanwha Life Insurance. It trades about 0.16 of its potential returns per unit of risk. Hanwha Life Insurance is currently generating about -0.06 per unit of risk. If you would invest 17,646,900 in Sam Yang Foods on November 3, 2024 and sell it today you would earn a total of 50,753,100 from holding Sam Yang Foods or generate 287.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Hanwha Life Insurance
Performance |
| Timeline |
| Sam Yang Foods |
| Hanwha Life Insurance |
Sam Yang and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Hanwha Life
The main advantage of trading using opposite Sam Yang and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Hanwha Life 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 Hanwha Life will offset losses from the drop in Hanwha Life's long position.| Sam Yang vs. Koryo Credit Information | Sam Yang vs. Dgb Financial | Sam Yang vs. Woori Financial Group | Sam Yang vs. Shinhan Financial Group |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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