Correlation Between Samyang Foods and Shinhan Financial
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Shinhan Financial 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 Shinhan Financial 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 Shinhan Financial Group, you can compare the effects of market volatilities on Samyang Foods and Shinhan Financial 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 Shinhan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Shinhan Financial.
Diversification Opportunities for Samyang Foods and Shinhan Financial
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samyang and Shinhan is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Shinhan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Financial 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 Shinhan Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Financial has no effect on the direction of Samyang Foods i.e., Samyang Foods and Shinhan Financial go up and down completely randomly.
Pair Corralation between Samyang Foods and Shinhan Financial
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.74 times more return on investment than Shinhan Financial. However, Samyang Foods is 1.74 times more volatile than Shinhan Financial Group. It trades about 0.13 of its potential returns per unit of risk. Shinhan Financial Group is currently generating about 0.04 per unit of risk. If you would invest 11,399,600 in Samyang Foods Co on September 26, 2024 and sell it today you would earn a total of 66,900,400 from holding Samyang Foods Co or generate 586.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Shinhan Financial Group
Performance |
| Timeline |
| Samyang Foods |
| Shinhan Financial |
Samyang Foods and Shinhan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Shinhan Financial
The main advantage of trading using opposite Samyang Foods and Shinhan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Shinhan Financial 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 Shinhan Financial will offset losses from the drop in Shinhan Financial's long position.| Samyang Foods vs. Coloray International Investment | Samyang Foods vs. Sam Yang Foods | Samyang Foods vs. Korea Investment Holdings | Samyang Foods vs. Samlip General Foods |
| Shinhan Financial vs. Samyang Foods Co | Shinhan Financial vs. Handok Clean Tech | Shinhan Financial vs. FOODWELL Co | Shinhan Financial vs. Lotte Non Life Insurance |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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