Correlation Between Samyang Foods and Hyundai
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Hyundai 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 Hyundai 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 Hyundai Motor, you can compare the effects of market volatilities on Samyang Foods and Hyundai 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 Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Hyundai.
Diversification Opportunities for Samyang Foods and Hyundai
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and Hyundai is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Hyundai Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor 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 Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of Samyang Foods i.e., Samyang Foods and Hyundai go up and down completely randomly.
Pair Corralation between Samyang Foods and Hyundai
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.78 times more return on investment than Hyundai. However, Samyang Foods is 1.78 times more volatile than Hyundai Motor. It trades about 0.12 of its potential returns per unit of risk. Hyundai Motor is currently generating about 0.05 per unit of risk. If you would invest 12,136,600 in Samyang Foods Co on September 24, 2024 and sell it today you would earn a total of 62,663,400 from holding Samyang Foods Co or generate 516.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Hyundai Motor
Performance |
| Timeline |
| Samyang Foods |
| Hyundai Motor |
Samyang Foods and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Hyundai
The main advantage of trading using opposite Samyang Foods and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Wonbang Tech Co | Samyang Foods vs. Busan Industrial Co | Samyang Foods vs. Busan Ind |
| Hyundai vs. Samyang Foods Co | Hyundai vs. Dong A Steel Technology | Hyundai vs. Sempio Foods Co | Hyundai vs. Yura Tech 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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