Correlation Between Samyang Foods and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Daelim Trading 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 Daelim Trading 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 Daelim Trading Co, you can compare the effects of market volatilities on Samyang Foods and Daelim Trading 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 Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Daelim Trading.
Diversification Opportunities for Samyang Foods and Daelim Trading
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samyang and Daelim is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading 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 Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of Samyang Foods i.e., Samyang Foods and Daelim Trading go up and down completely randomly.
Pair Corralation between Samyang Foods and Daelim Trading
Assuming the 90 days trading horizon Samyang Foods Co is expected to under-perform the Daelim Trading. In addition to that, Samyang Foods is 1.6 times more volatile than Daelim Trading Co. It trades about -0.19 of its total potential returns per unit of risk. Daelim Trading Co is currently generating about -0.12 per unit of volatility. If you would invest 266,500 in Daelim Trading Co on November 5, 2024 and sell it today you would lose (7,500) from holding Daelim Trading Co or give up 2.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Daelim Trading Co
Performance |
| Timeline |
| Samyang Foods |
| Daelim Trading |
Samyang Foods and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Daelim Trading
The main advantage of trading using opposite Samyang Foods and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| Samyang Foods vs. Korea Information Communications | Samyang Foods vs. Hyundai Engineering Plastics | Samyang Foods vs. Lotte Data Communication | Samyang Foods vs. Digital Power Communications |
| Daelim Trading vs. Koryo Credit Information | Daelim Trading vs. Woori Technology Investment | Daelim Trading vs. Golden Bridge Investment | Daelim Trading vs. Coloray International Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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