Correlation Between Samyang Foods and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Samyang Foods and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Hankukpackage.
Diversification Opportunities for Samyang Foods and Hankukpackage
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyang and Hankukpackage is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Samyang Foods i.e., Samyang Foods and Hankukpackage go up and down completely randomly.
Pair Corralation between Samyang Foods and Hankukpackage
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 2.29 times more return on investment than Hankukpackage. However, Samyang Foods is 2.29 times more volatile than Hankukpackage Co. It trades about 0.14 of its potential returns per unit of risk. Hankukpackage Co is currently generating about 0.0 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Hankukpackage Co
Performance |
| Timeline |
| Samyang Foods |
| Hankukpackage |
Samyang Foods and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Hankukpackage
The main advantage of trading using opposite Samyang Foods and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage'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 |
| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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