Correlation Between Samyang Foods and Genie Music
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Genie Music 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 Genie Music 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 Genie Music, you can compare the effects of market volatilities on Samyang Foods and Genie Music 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 Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Genie Music.
Diversification Opportunities for Samyang Foods and Genie Music
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samyang and Genie is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music 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 Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of Samyang Foods i.e., Samyang Foods and Genie Music go up and down completely randomly.
Pair Corralation between Samyang Foods and Genie Music
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 2.31 times more return on investment than Genie Music. However, Samyang Foods is 2.31 times more volatile than Genie Music. It trades about 0.25 of its potential returns per unit of risk. Genie Music is currently generating about 0.2 per unit of risk. If you would invest 70,654,500 in Samyang Foods Co on December 4, 2024 and sell it today you would earn a total of 15,345,500 from holding Samyang Foods Co or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Genie Music
Performance |
| Timeline |
| Samyang Foods |
| Genie Music |
Samyang Foods and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Genie Music
The main advantage of trading using opposite Samyang Foods and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
| Genie Music vs. LAKE MATERIALS LTD | Genie Music vs. DoubleU Games Co | Genie Music vs. Samyang Foods Co | Genie Music vs. National Plastic 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |