Correlation Between Sam Yang and TOPMATERIAL
Can any of the company-specific risk be diversified away by investing in both Sam Yang and TOPMATERIAL 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 TOPMATERIAL 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 TOPMATERIAL LTD, you can compare the effects of market volatilities on Sam Yang and TOPMATERIAL 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 TOPMATERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and TOPMATERIAL.
Diversification Opportunities for Sam Yang and TOPMATERIAL
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and TOPMATERIAL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and TOPMATERIAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPMATERIAL LTD 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 TOPMATERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPMATERIAL LTD has no effect on the direction of Sam Yang i.e., Sam Yang and TOPMATERIAL go up and down completely randomly.
Pair Corralation between Sam Yang and TOPMATERIAL
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.8 times more return on investment than TOPMATERIAL. However, Sam Yang Foods is 1.26 times less risky than TOPMATERIAL. It trades about 0.11 of its potential returns per unit of risk. TOPMATERIAL LTD is currently generating about 0.01 per unit of risk. If you would invest 12,616,800 in Sam Yang Foods on September 12, 2024 and sell it today you would earn a total of 54,283,200 from holding Sam Yang Foods or generate 430.25% 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. TOPMATERIAL LTD
Performance |
| Timeline |
| Sam Yang Foods |
| TOPMATERIAL LTD |
Sam Yang and TOPMATERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and TOPMATERIAL
The main advantage of trading using opposite Sam Yang and TOPMATERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, TOPMATERIAL 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 TOPMATERIAL will offset losses from the drop in TOPMATERIAL's long position.| Sam Yang vs. Samhyun Steel Co | Sam Yang vs. Hanjoo Light Metal | Sam Yang vs. Finebesteel | Sam Yang vs. Han Kook Steel |
| TOPMATERIAL vs. Foodnamoo | TOPMATERIAL vs. Sam Yang Foods | TOPMATERIAL vs. Shinsegae Food | TOPMATERIAL vs. Ssangyong Information Communication |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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