Correlation Between Samyang Foods and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Anam Electronics 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 Anam Electronics 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 Anam Electronics Co, you can compare the effects of market volatilities on Samyang Foods and Anam Electronics 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 Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Anam Electronics.
Diversification Opportunities for Samyang Foods and Anam Electronics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samyang and Anam is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics 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 Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Samyang Foods i.e., Samyang Foods and Anam Electronics go up and down completely randomly.
Pair Corralation between Samyang Foods and Anam Electronics
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.26 times more return on investment than Anam Electronics. However, Samyang Foods is 1.26 times more volatile than Anam Electronics Co. It trades about 0.2 of its potential returns per unit of risk. Anam Electronics Co is currently generating about 0.16 per unit of risk. If you would invest 66,900,000 in Samyang Foods Co on October 11, 2024 and sell it today you would earn a total of 7,100,000 from holding Samyang Foods Co or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Anam Electronics Co
Performance |
| Timeline |
| Samyang Foods |
| Anam Electronics |
Samyang Foods and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Anam Electronics
The main advantage of trading using opposite Samyang Foods and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Samyang Foods vs. NICE Information Service | Samyang Foods vs. Insung Information Co | Samyang Foods vs. Ssangyong Materials Corp | Samyang Foods vs. System and Application |
| Anam Electronics vs. Daesung Hi Tech Co | Anam Electronics vs. Daishin Information Communications | Anam Electronics vs. Samyang Foods Co | Anam Electronics vs. Asiana Airlines |
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.
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