Correlation Between Samyang Foods and Hyunwoo Industrial
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Hyunwoo Industrial 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 Hyunwoo Industrial 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 Hyunwoo Industrial Co, you can compare the effects of market volatilities on Samyang Foods and Hyunwoo Industrial 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 Hyunwoo Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Hyunwoo Industrial.
Diversification Opportunities for Samyang Foods and Hyunwoo Industrial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyang and Hyunwoo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Hyunwoo Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyunwoo Industrial 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 Hyunwoo Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyunwoo Industrial has no effect on the direction of Samyang Foods i.e., Samyang Foods and Hyunwoo Industrial go up and down completely randomly.
Pair Corralation between Samyang Foods and Hyunwoo Industrial
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.04 times more return on investment than Hyunwoo Industrial. However, Samyang Foods is 1.04 times more volatile than Hyunwoo Industrial Co. It trades about 0.5 of its potential returns per unit of risk. Hyunwoo Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 51,200,000 in Samyang Foods Co on September 22, 2024 and sell it today you would earn a total of 23,600,000 from holding Samyang Foods Co or generate 46.09% 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. Hyunwoo Industrial Co
Performance |
| Timeline |
| Samyang Foods |
| Hyunwoo Industrial |
Samyang Foods and Hyunwoo Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Hyunwoo Industrial
The main advantage of trading using opposite Samyang Foods and Hyunwoo Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Hyunwoo Industrial 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 Hyunwoo Industrial will offset losses from the drop in Hyunwoo Industrial's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Wonbang Tech Co | Samyang Foods vs. Busan Industrial Co | Samyang Foods vs. Busan Ind |
| Hyunwoo Industrial vs. SK Hynix | Hyunwoo Industrial vs. LX Semicon Co | Hyunwoo Industrial vs. Tokai Carbon Korea | Hyunwoo Industrial vs. People Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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