Correlation Between Sam Yang and Cosmax Nbt
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Cosmax Nbt 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 Cosmax Nbt 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 Cosmax Nbt, you can compare the effects of market volatilities on Sam Yang and Cosmax Nbt 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 Cosmax Nbt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Cosmax Nbt.
Diversification Opportunities for Sam Yang and Cosmax Nbt
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sam and Cosmax is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Cosmax Nbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Nbt 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 Cosmax Nbt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Nbt has no effect on the direction of Sam Yang i.e., Sam Yang and Cosmax Nbt go up and down completely randomly.
Pair Corralation between Sam Yang and Cosmax Nbt
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 1.42 times more return on investment than Cosmax Nbt. However, Sam Yang is 1.42 times more volatile than Cosmax Nbt. It trades about 0.13 of its potential returns per unit of risk. Cosmax Nbt is currently generating about -0.09 per unit of risk. If you would invest 22,468,900 in Sam Yang Foods on September 14, 2024 and sell it today you would earn a total of 45,631,100 from holding Sam Yang Foods or generate 203.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Cosmax Nbt
Performance |
| Timeline |
| Sam Yang Foods |
| Cosmax Nbt |
Sam Yang and Cosmax Nbt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Cosmax Nbt
The main advantage of trading using opposite Sam Yang and Cosmax Nbt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Cosmax Nbt 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 Cosmax Nbt will offset losses from the drop in Cosmax Nbt's long position.| Sam Yang vs. Korea New Network | Sam Yang vs. ICD Co | Sam Yang vs. DYPNF CoLtd | Sam Yang vs. Solution Advanced Technology |
| Cosmax Nbt vs. KIWI Media Group | Cosmax Nbt vs. Daewon Media Co | Cosmax Nbt vs. Chorokbaem Healthcare Co | Cosmax Nbt vs. SM Entertainment 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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