Correlation Between Samyang Foods and COWAY
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and COWAY 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 COWAY 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 COWAY Co, you can compare the effects of market volatilities on Samyang Foods and COWAY 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 COWAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and COWAY.
Diversification Opportunities for Samyang Foods and COWAY
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and COWAY is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and COWAY Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COWAY 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 COWAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COWAY has no effect on the direction of Samyang Foods i.e., Samyang Foods and COWAY go up and down completely randomly.
Pair Corralation between Samyang Foods and COWAY
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.74 times more return on investment than COWAY. However, Samyang Foods is 1.74 times more volatile than COWAY Co. It trades about 0.11 of its potential returns per unit of risk. COWAY Co is currently generating about 0.03 per unit of risk. If you would invest 11,589,800 in Samyang Foods Co on September 4, 2024 and sell it today you would earn a total of 46,610,200 from holding Samyang Foods Co or generate 402.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. COWAY Co
Performance |
| Timeline |
| Samyang Foods |
| COWAY |
Samyang Foods and COWAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and COWAY
The main advantage of trading using opposite Samyang Foods and COWAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, COWAY 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 COWAY will offset losses from the drop in COWAY's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
| COWAY vs. Samyang Foods Co | COWAY vs. DB Insurance Co | COWAY vs. Cuckoo Electronics Co | COWAY vs. Sunny Electronics Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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