Correlation Between Samyang Foods and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Dongil Technology 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 Dongil Technology 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 Dongil Technology, you can compare the effects of market volatilities on Samyang Foods and Dongil Technology 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 Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Dongil Technology.
Diversification Opportunities for Samyang Foods and Dongil Technology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and Dongil is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology 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 Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of Samyang Foods i.e., Samyang Foods and Dongil Technology go up and down completely randomly.
Pair Corralation between Samyang Foods and Dongil Technology
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 3.84 times more return on investment than Dongil Technology. However, Samyang Foods is 3.84 times more volatile than Dongil Technology. It trades about 0.01 of its potential returns per unit of risk. Dongil Technology is currently generating about -0.28 per unit of risk. If you would invest 52,200,000 in Samyang Foods Co on August 29, 2024 and sell it today you would lose (300,000) from holding Samyang Foods Co or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Dongil Technology
Performance |
| Timeline |
| Samyang Foods |
| Dongil Technology |
Samyang Foods and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Dongil Technology
The main advantage of trading using opposite Samyang Foods and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Dongil Technology 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 Dongil Technology will offset losses from the drop in Dongil Technology's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
| Dongil Technology vs. Korea Real Estate | Dongil Technology vs. Korea Ratings Co | Dongil Technology vs. IQuest Co | Dongil Technology vs. Wonbang Tech 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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