Correlation Between Samyang Foods and Korean Air
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Korean Air 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 Korean Air 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 Korean Air Lines, you can compare the effects of market volatilities on Samyang Foods and Korean Air 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 Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Korean Air.
Diversification Opportunities for Samyang Foods and Korean Air
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samyang and Korean is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines 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 Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of Samyang Foods i.e., Samyang Foods and Korean Air go up and down completely randomly.
Pair Corralation between Samyang Foods and Korean Air
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 2.76 times more return on investment than Korean Air. However, Samyang Foods is 2.76 times more volatile than Korean Air Lines. It trades about 0.14 of its potential returns per unit of risk. Korean Air Lines is currently generating about 0.03 per unit of risk. If you would invest 21,724,900 in Samyang Foods Co on September 12, 2024 and sell it today you would earn a total of 46,575,100 from holding Samyang Foods Co or generate 214.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Korean Air Lines
Performance |
| Timeline |
| Samyang Foods |
| Korean Air Lines |
Samyang Foods and Korean Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Korean Air
The main advantage of trading using opposite Samyang Foods and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.| Samyang Foods vs. Samsung Electronics Co | Samyang Foods vs. Samsung Electronics Co | Samyang Foods vs. SK Hynix | Samyang Foods vs. POSCO Holdings |
| Korean Air vs. Korea New Network | Korean Air vs. Solution Advanced Technology | Korean Air vs. Busan Industrial Co | Korean Air vs. Busan Ind |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |