Correlation Between Sam Yang and Alchera
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Alchera 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 Alchera 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 Alchera, you can compare the effects of market volatilities on Sam Yang and Alchera 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 Alchera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Alchera.
Diversification Opportunities for Sam Yang and Alchera
Very good diversification
The 3 months correlation between Sam and Alchera is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Alchera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alchera 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 Alchera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alchera has no effect on the direction of Sam Yang i.e., Sam Yang and Alchera go up and down completely randomly.
Pair Corralation between Sam Yang and Alchera
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.52 times more return on investment than Alchera. However, Sam Yang Foods is 1.94 times less risky than Alchera. It trades about -0.29 of its potential returns per unit of risk. Alchera is currently generating about -0.16 per unit of risk. If you would invest 58,900,000 in Sam Yang Foods on September 3, 2024 and sell it today you would lose (7,000,000) from holding Sam Yang Foods or give up 11.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Alchera
Performance |
| Timeline |
| Sam Yang Foods |
| Alchera |
Sam Yang and Alchera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Alchera
The main advantage of trading using opposite Sam Yang and Alchera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Alchera 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 Alchera will offset losses from the drop in Alchera'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 |
| Alchera vs. InfoBank | Alchera vs. Tuksu Engineering ConstructionLtd | Alchera vs. Nam Hwa Construction | Alchera vs. Dongkuk Structures 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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