Correlation Between Samyang Foods and Narae Nanotech
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Narae Nanotech 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 Narae Nanotech 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 Narae Nanotech Corp, you can compare the effects of market volatilities on Samyang Foods and Narae Nanotech 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 Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Narae Nanotech.
Diversification Opportunities for Samyang Foods and Narae Nanotech
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samyang and Narae is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp 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 Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of Samyang Foods i.e., Samyang Foods and Narae Nanotech go up and down completely randomly.
Pair Corralation between Samyang Foods and Narae Nanotech
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 1.18 times more return on investment than Narae Nanotech. However, Samyang Foods is 1.18 times more volatile than Narae Nanotech Corp. It trades about 0.12 of its potential returns per unit of risk. Narae Nanotech Corp is currently generating about -0.05 per unit of risk. If you would invest 11,753,400 in Samyang Foods Co on October 26, 2024 and sell it today you would earn a total of 59,246,600 from holding Samyang Foods Co or generate 504.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Narae Nanotech Corp
Performance |
| Timeline |
| Samyang Foods |
| Narae Nanotech Corp |
Samyang Foods and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Narae Nanotech
The main advantage of trading using opposite Samyang Foods and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| Samyang Foods vs. Koryo Credit Information | Samyang Foods vs. Dongbu Insurance Co | Samyang Foods vs. DB Insurance Co | Samyang Foods vs. InfoBank |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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