Correlation Between Samyang Foods and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and CJ Seafood 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 CJ Seafood 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 CJ Seafood Corp, you can compare the effects of market volatilities on Samyang Foods and CJ Seafood 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 CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and CJ Seafood.
Diversification Opportunities for Samyang Foods and CJ Seafood
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and 011150 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp 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 CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of Samyang Foods i.e., Samyang Foods and CJ Seafood go up and down completely randomly.
Pair Corralation between Samyang Foods and CJ Seafood
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.06 times more return on investment than CJ Seafood. However, Samyang Foods is 1.06 times more volatile than CJ Seafood Corp. It trades about 0.14 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.02 per unit of risk. If you would invest 19,344,100 in Samyang Foods Co on September 14, 2024 and sell it today you would earn a total of 48,755,900 from holding Samyang Foods Co or generate 252.05% 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. CJ Seafood Corp
Performance |
| Timeline |
| Samyang Foods |
| CJ Seafood Corp |
Samyang Foods and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and CJ Seafood
The main advantage of trading using opposite Samyang Foods and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood'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 |
| CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. SK Hynix | CJ Seafood vs. POSCO Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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