Correlation Between Samyang Foods and PI Advanced
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and PI Advanced 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 PI Advanced 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 PI Advanced Materials, you can compare the effects of market volatilities on Samyang Foods and PI Advanced 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 PI Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and PI Advanced.
Diversification Opportunities for Samyang Foods and PI Advanced
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samyang and 178920 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and PI Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PI Advanced Materials 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 PI Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PI Advanced Materials has no effect on the direction of Samyang Foods i.e., Samyang Foods and PI Advanced go up and down completely randomly.
Pair Corralation between Samyang Foods and PI Advanced
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.93 times more return on investment than PI Advanced. However, Samyang Foods Co is 1.08 times less risky than PI Advanced. It trades about 0.05 of its potential returns per unit of risk. PI Advanced Materials is currently generating about -0.21 per unit of risk. If you would invest 48,900,000 in Samyang Foods Co on September 2, 2024 and sell it today you would earn a total of 3,000,000 from holding Samyang Foods Co or generate 6.13% 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. PI Advanced Materials
Performance |
| Timeline |
| Samyang Foods |
| PI Advanced Materials |
Samyang Foods and PI Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and PI Advanced
The main advantage of trading using opposite Samyang Foods and PI Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, PI Advanced 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 PI Advanced will offset losses from the drop in PI Advanced's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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