Correlation Between Sam Yang and Cytogen
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Cytogen 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 Cytogen 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 Cytogen, you can compare the effects of market volatilities on Sam Yang and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Cytogen.
Diversification Opportunities for Sam Yang and Cytogen
Pay attention - limited upside
The 3 months correlation between Sam and Cytogen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Sam Yang i.e., Sam Yang and Cytogen go up and down completely randomly.
Pair Corralation between Sam Yang and Cytogen
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.51 times more return on investment than Cytogen. However, Sam Yang Foods is 1.96 times less risky than Cytogen. It trades about 0.17 of its potential returns per unit of risk. Cytogen is currently generating about -0.11 per unit of risk. If you would invest 52,100,000 in Sam Yang Foods on October 29, 2024 and sell it today you would earn a total of 18,900,000 from holding Sam Yang Foods or generate 36.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Cytogen
Performance |
| Timeline |
| Sam Yang Foods |
| Cytogen |
Sam Yang and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Cytogen
The main advantage of trading using opposite Sam Yang and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Sam Yang vs. Taegu Broadcasting | Sam Yang vs. Korea Information Engineering | Sam Yang vs. DataSolution | Sam Yang vs. Daou Data Corp |
| Cytogen vs. Daewoo Engineering Construction | Cytogen vs. Camus Engineering Construction | Cytogen vs. Seohee Construction Co | Cytogen vs. GS Engineering Construction |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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