Correlation Between Samyang Foods and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Camus Engineering 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 Camus Engineering 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 Camus Engineering Construction, you can compare the effects of market volatilities on Samyang Foods and Camus Engineering 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 Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Camus Engineering.
Diversification Opportunities for Samyang Foods and Camus Engineering
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samyang and Camus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering 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 Camus Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camus Engineering has no effect on the direction of Samyang Foods i.e., Samyang Foods and Camus Engineering go up and down completely randomly.
Pair Corralation between Samyang Foods and Camus Engineering
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.53 times more return on investment than Camus Engineering. However, Samyang Foods Co is 1.89 times less risky than Camus Engineering. It trades about 0.23 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about 0.07 per unit of risk. If you would invest 55,200,000 in Samyang Foods Co on November 1, 2024 and sell it today you would earn a total of 15,800,000 from holding Samyang Foods Co or generate 28.62% 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. Camus Engineering Construction
Performance |
| Timeline |
| Samyang Foods |
| Camus Engineering |
Samyang Foods and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Camus Engineering
The main advantage of trading using opposite Samyang Foods and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Camus Engineering 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 Camus Engineering will offset losses from the drop in Camus Engineering's long position.| Samyang Foods vs. Kg Chemical | Samyang Foods vs. LG Household Healthcare | Samyang Foods vs. Miwon Chemical | Samyang Foods vs. Lotte Rental Co |
| Camus Engineering vs. Innowireless Co | Camus Engineering vs. SEOJEON ELECTRIC MACHINERY | Camus Engineering vs. DSC Investment | Camus Engineering vs. Shinsegae Engineering Construction |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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