Correlation Between Sam Yang and INNOX Advanced
Can any of the company-specific risk be diversified away by investing in both Sam Yang and INNOX Advanced 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 INNOX Advanced 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 INNOX Advanced Materials, you can compare the effects of market volatilities on Sam Yang and INNOX Advanced 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 INNOX Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and INNOX Advanced.
Diversification Opportunities for Sam Yang and INNOX Advanced
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and INNOX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and INNOX Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INNOX Advanced Materials 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 INNOX Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INNOX Advanced Materials has no effect on the direction of Sam Yang i.e., Sam Yang and INNOX Advanced go up and down completely randomly.
Pair Corralation between Sam Yang and INNOX Advanced
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 1.22 times more return on investment than INNOX Advanced. However, Sam Yang is 1.22 times more volatile than INNOX Advanced Materials. It trades about 0.1 of its potential returns per unit of risk. INNOX Advanced Materials is currently generating about -0.01 per unit of risk. If you would invest 11,687,600 in Sam Yang Foods on September 3, 2024 and sell it today you would earn a total of 40,212,400 from holding Sam Yang Foods or generate 344.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. INNOX Advanced Materials
Performance |
| Timeline |
| Sam Yang Foods |
| INNOX Advanced Materials |
Sam Yang and INNOX Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and INNOX Advanced
The main advantage of trading using opposite Sam Yang and INNOX Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, INNOX Advanced 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 INNOX Advanced will offset losses from the drop in INNOX Advanced's long position.| Sam Yang vs. LG Display | Sam Yang vs. Hyundai Motor | Sam Yang vs. Hyundai Motor Co | Sam Yang vs. Hyundai Motor Co |
| INNOX Advanced vs. SK Hynix | INNOX Advanced vs. LX Semicon Co | INNOX Advanced vs. Tokai Carbon Korea | INNOX Advanced vs. People Technology |
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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |