Correlation Between Samyang Foods and Playgram
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Playgram 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 Playgram 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 Playgram Co, you can compare the effects of market volatilities on Samyang Foods and Playgram 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 Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Playgram.
Diversification Opportunities for Samyang Foods and Playgram
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samyang and Playgram is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram 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 Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Samyang Foods i.e., Samyang Foods and Playgram go up and down completely randomly.
Pair Corralation between Samyang Foods and Playgram
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.83 times more return on investment than Playgram. However, Samyang Foods Co is 1.2 times less risky than Playgram. It trades about 0.14 of its potential returns per unit of risk. Playgram Co is currently generating about -0.04 per unit of risk. If you would invest 11,910,600 in Samyang Foods Co on November 27, 2024 and sell it today you would earn a total of 77,589,400 from holding Samyang Foods Co or generate 651.43% 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. Playgram Co
Performance |
| Timeline |
| Samyang Foods |
| Playgram |
Samyang Foods and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Playgram
The main advantage of trading using opposite Samyang Foods and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Samyang Foods vs. Haitai Confectionery Foods | Samyang Foods vs. Hotel Shilla Co | Samyang Foods vs. Industrial Bank | Samyang Foods vs. FOODWELL Co |
| Playgram vs. Korea Shipbuilding Offshore | Playgram vs. Samyoung Electronics Co | Playgram vs. Mobileleader CoLtd | Playgram vs. UJU Electronics 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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