Correlation Between Samyang Foods and J Steel
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and J Steel 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 J Steel 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 J Steel Co, you can compare the effects of market volatilities on Samyang Foods and J Steel 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 J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and J Steel.
Diversification Opportunities for Samyang Foods and J Steel
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and 023440 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel 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 J Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Steel has no effect on the direction of Samyang Foods i.e., Samyang Foods and J Steel go up and down completely randomly.
Pair Corralation between Samyang Foods and J Steel
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.36 times more return on investment than J Steel. However, Samyang Foods is 1.36 times more volatile than J Steel Co. It trades about 0.34 of its potential returns per unit of risk. J Steel Co is currently generating about 0.15 per unit of risk. If you would invest 68,400,000 in Samyang Foods Co on November 29, 2024 and sell it today you would earn a total of 19,200,000 from holding Samyang Foods Co or generate 28.07% 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. J Steel Co
Performance |
| Timeline |
| Samyang Foods |
| J Steel |
Samyang Foods and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and J Steel
The main advantage of trading using opposite Samyang Foods and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, J Steel 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 J Steel will offset losses from the drop in J Steel's long position.| Samyang Foods vs. Automobile Pc | Samyang Foods vs. Nice Information Telecommunication | Samyang Foods vs. Hannong Chemicals | Samyang Foods vs. ZUM Internet Corp |
| J Steel vs. Bookook Steel | J Steel vs. Dongkuk Steel Mill | J Steel vs. Hwangkum Steel Technology | J Steel vs. Daehan Steel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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