Correlation Between Sam Yang and JETEMA
Can any of the company-specific risk be diversified away by investing in both Sam Yang and JETEMA 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 JETEMA 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 JETEMA Co, you can compare the effects of market volatilities on Sam Yang and JETEMA 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 JETEMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and JETEMA.
Diversification Opportunities for Sam Yang and JETEMA
Very weak diversification
The 3 months correlation between Sam and JETEMA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and JETEMA Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JETEMA 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 JETEMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JETEMA has no effect on the direction of Sam Yang i.e., Sam Yang and JETEMA go up and down completely randomly.
Pair Corralation between Sam Yang and JETEMA
Assuming the 90 days trading horizon Sam Yang is expected to generate 1.63 times less return on investment than JETEMA. But when comparing it to its historical volatility, Sam Yang Foods is 1.01 times less risky than JETEMA. It trades about 0.01 of its potential returns per unit of risk. JETEMA Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,941,000 in JETEMA Co on September 1, 2024 and sell it today you would earn a total of 8,000 from holding JETEMA Co or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. JETEMA Co
Performance |
| Timeline |
| Sam Yang Foods |
| JETEMA |
Sam Yang and JETEMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and JETEMA
The main advantage of trading using opposite Sam Yang and JETEMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, JETEMA 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 JETEMA will offset losses from the drop in JETEMA'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 |
| JETEMA vs. Sam Yang Foods | JETEMA vs. Daiyang Metal Co | JETEMA vs. Sempio Foods Co | JETEMA vs. Songwon Industrial Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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