Correlation Between Samyang Foods and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Kukil Metal 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 Kukil Metal 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 Kukil Metal Co, you can compare the effects of market volatilities on Samyang Foods and Kukil Metal 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 Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Kukil Metal.
Diversification Opportunities for Samyang Foods and Kukil Metal
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and Kukil is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal 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 Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Samyang Foods i.e., Samyang Foods and Kukil Metal go up and down completely randomly.
Pair Corralation between Samyang Foods and Kukil Metal
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.91 times more return on investment than Kukil Metal. However, Samyang Foods is 1.91 times more volatile than Kukil Metal Co. It trades about 0.15 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.11 per unit of risk. If you would invest 56,800,000 in Samyang Foods Co on October 14, 2024 and sell it today you would earn a total of 18,200,000 from holding Samyang Foods Co or generate 32.04% 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. Kukil Metal Co
Performance |
| Timeline |
| Samyang Foods |
| Kukil Metal |
Samyang Foods and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Kukil Metal
The main advantage of trading using opposite Samyang Foods and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's long position.| Samyang Foods vs. Korea Shipbuilding Offshore | Samyang Foods vs. DRB Industrial Co | Samyang Foods vs. Dongil Metal Co | Samyang Foods vs. Shinil Industrial Co |
| Kukil Metal vs. FOODWELL Co | Kukil Metal vs. Haitai Confectionery Foods | Kukil Metal vs. Daejung Chemicals Metals | Kukil Metal vs. Samyang Foods 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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