Correlation Between Samyang Foods and DreamCIS
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and DreamCIS 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 DreamCIS 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 DreamCIS, you can compare the effects of market volatilities on Samyang Foods and DreamCIS 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 DreamCIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and DreamCIS.
Diversification Opportunities for Samyang Foods and DreamCIS
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samyang and DreamCIS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and DreamCIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DreamCIS 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 DreamCIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DreamCIS has no effect on the direction of Samyang Foods i.e., Samyang Foods and DreamCIS go up and down completely randomly.
Pair Corralation between Samyang Foods and DreamCIS
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.67 times more return on investment than DreamCIS. However, Samyang Foods Co is 1.48 times less risky than DreamCIS. It trades about 0.11 of its potential returns per unit of risk. DreamCIS is currently generating about -0.04 per unit of risk. If you would invest 48,600,000 in Samyang Foods Co on September 4, 2024 and sell it today you would earn a total of 9,600,000 from holding Samyang Foods Co or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyang Foods Co vs. DreamCIS
Performance |
| Timeline |
| Samyang Foods |
| DreamCIS |
Samyang Foods and DreamCIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and DreamCIS
The main advantage of trading using opposite Samyang Foods and DreamCIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, DreamCIS 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 DreamCIS will offset losses from the drop in DreamCIS's long position.| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
| DreamCIS vs. Samyang Foods Co | DreamCIS vs. Sam Yang Foods | DreamCIS vs. Hanjin Transportation Co | DreamCIS vs. Samlip General Foods |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |