Correlation Between Samyang Foods and Shin Steel
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Shin Steel 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 Shin Steel 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 Shin Steel Co, you can compare the effects of market volatilities on Samyang Foods and Shin Steel 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 Shin Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Shin Steel.
Diversification Opportunities for Samyang Foods and Shin Steel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samyang and Shin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Shin Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Steel 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 Shin Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Steel has no effect on the direction of Samyang Foods i.e., Samyang Foods and Shin Steel go up and down completely randomly.
Pair Corralation between Samyang Foods and Shin Steel
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.96 times more return on investment than Shin Steel. However, Samyang Foods Co is 1.05 times less risky than Shin Steel. It trades about -0.19 of its potential returns per unit of risk. Shin Steel Co is currently generating about -0.28 per unit of risk. If you would invest 73,400,000 in Samyang Foods Co on November 6, 2024 and sell it today you would lose (5,000,000) from holding Samyang Foods Co or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. Shin Steel Co
Performance |
| Timeline |
| Samyang Foods |
| Shin Steel |
Samyang Foods and Shin Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Shin Steel
The main advantage of trading using opposite Samyang Foods and Shin Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Shin Steel 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 Shin Steel will offset losses from the drop in Shin Steel's long position.| Samyang Foods vs. Atinum Investment Co | Samyang Foods vs. DAEDUCK ELECTRONICS CoLtd | Samyang Foods vs. Sangsangin Investment Securities | Samyang Foods vs. Korea Electronic Certification |
| Shin Steel vs. Samyoung Electronics Co | Shin Steel vs. Daiyang Metal Co | Shin Steel vs. Daejoo Electronic Materials | Shin Steel vs. SungMoon Electronics 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |