Correlation Between Samyang Foods and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Samsung Fire 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 Samyang Foods and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyang Foods Co and Samsung Fire Marine, you can compare the effects of market volatilities on Samyang Foods and Samsung Fire 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 Samyang Foods with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Samsung Fire.
Diversification Opportunities for Samyang Foods and Samsung Fire
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyang and Samsung is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Samyang Foods 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 Samyang Foods Co are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Samyang Foods i.e., Samyang Foods and Samsung Fire go up and down completely randomly.
Pair Corralation between Samyang Foods and Samsung Fire
Assuming the 90 days trading horizon Samyang Foods Co is expected to under-perform the Samsung Fire. In addition to that, Samyang Foods is 1.3 times more volatile than Samsung Fire Marine. It trades about -0.19 of its total potential returns per unit of risk. Samsung Fire Marine is currently generating about -0.16 per unit of volatility. If you would invest 35,850,000 in Samsung Fire Marine on October 30, 2024 and sell it today you would lose (1,700,000) from holding Samsung Fire Marine or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Samsung Fire Marine
Performance |
| Timeline |
| Samyang Foods |
| Samsung Fire Marine |
Samyang Foods and Samsung Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Samsung Fire
The main advantage of trading using opposite Samyang Foods and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Samsung Fire 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 Samsung Fire will offset losses from the drop in Samsung Fire's long position.| Samyang Foods vs. Yura Tech Co | Samyang Foods vs. Hankukpackage Co | Samyang Foods vs. N2Tech Co | Samyang Foods vs. RFTech Co |
| Samsung Fire vs. Ssangyong Information Communication | Samsung Fire vs. Lotte Non Life Insurance | Samsung Fire vs. Mobile Appliance | Samsung Fire vs. Innowireless 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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