Correlation Between Sam Yang and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Daishin Balance 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 Daishin Balance 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 Daishin Balance No8, you can compare the effects of market volatilities on Sam Yang and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Daishin Balance.
Diversification Opportunities for Sam Yang and Daishin Balance
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sam and Daishin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of Sam Yang i.e., Sam Yang and Daishin Balance go up and down completely randomly.
Pair Corralation between Sam Yang and Daishin Balance
Assuming the 90 days trading horizon Sam Yang Foods is expected to under-perform the Daishin Balance. But the stock apears to be less risky and, when comparing its historical volatility, Sam Yang Foods is 2.03 times less risky than Daishin Balance. The stock trades about -0.13 of its potential returns per unit of risk. The Daishin Balance No8 is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 445,000 in Daishin Balance No8 on October 24, 2024 and sell it today you would earn a total of 114,000 from holding Daishin Balance No8 or generate 25.62% 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. Daishin Balance No8
Performance |
Timeline |
Sam Yang Foods |
Daishin Balance No8 |
Sam Yang and Daishin Balance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sam Yang and Daishin Balance
The main advantage of trading using opposite Sam Yang and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.Sam Yang vs. Daishin Information Communications | Sam Yang vs. Namhae Chemical | Sam Yang vs. SH Energy Chemical | Sam Yang vs. Mobile Appliance |
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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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