Correlation Between Sam Yang and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Miwon Chemical 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 Miwon Chemical 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 Miwon Chemical, you can compare the effects of market volatilities on Sam Yang and Miwon Chemical 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 Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Miwon Chemical.
Diversification Opportunities for Sam Yang and Miwon Chemical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sam and Miwon is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical 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 Miwon Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miwon Chemical has no effect on the direction of Sam Yang i.e., Sam Yang and Miwon Chemical go up and down completely randomly.
Pair Corralation between Sam Yang and Miwon Chemical
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 3.8 times more return on investment than Miwon Chemical. However, Sam Yang is 3.8 times more volatile than Miwon Chemical. It trades about 0.01 of its potential returns per unit of risk. Miwon Chemical is currently generating about -0.08 per unit of risk. If you would invest 52,000,000 in Sam Yang Foods on September 1, 2024 and sell it today you would lose (100,000) from holding Sam Yang Foods or give up 0.19% 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. Miwon Chemical
Performance |
| Timeline |
| Sam Yang Foods |
| Miwon Chemical |
Sam Yang and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Miwon Chemical
The main advantage of trading using opposite Sam Yang and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Miwon Chemical 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 Miwon Chemical will offset losses from the drop in Miwon Chemical's long position.| Sam Yang vs. Korea Real Estate | Sam Yang vs. Korea Ratings Co | Sam Yang vs. IQuest Co | Sam Yang vs. Wonbang Tech Co |
| Miwon Chemical vs. LG Chem | Miwon Chemical vs. Chunbo Co | Miwon Chemical vs. Hyosung Chemical Corp | Miwon Chemical vs. LIG ES SPAC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |