Correlation Between Samyang Foods and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Wireless Power 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 Wireless Power 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 Wireless Power Amplifier, you can compare the effects of market volatilities on Samyang Foods and Wireless Power 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 Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Wireless Power.
Diversification Opportunities for Samyang Foods and Wireless Power
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samyang and Wireless is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier 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 Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Samyang Foods i.e., Samyang Foods and Wireless Power go up and down completely randomly.
Pair Corralation between Samyang Foods and Wireless Power
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.9 times more return on investment than Wireless Power. However, Samyang Foods Co is 1.11 times less risky than Wireless Power. It trades about 0.08 of its potential returns per unit of risk. Wireless Power Amplifier is currently generating about 0.05 per unit of risk. If you would invest 58,523,900 in Samyang Foods Co on November 28, 2024 and sell it today you would earn a total of 29,376,100 from holding Samyang Foods Co or generate 50.2% 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. Wireless Power Amplifier
Performance |
| Timeline |
| Samyang Foods |
| Wireless Power Amplifier |
Samyang Foods and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and Wireless Power
The main advantage of trading using opposite Samyang Foods and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Samyang Foods vs. T3 Entertainment Co | Samyang Foods vs. Infinitt Healthcare Co | Samyang Foods vs. Chorokbaem Healthcare Co | Samyang Foods vs. ChipsMedia |
| Wireless Power vs. Samsung Electronics Co | Wireless Power vs. CU Tech Corp | Wireless Power vs. Wave Electronics Co | Wireless Power vs. A Tech Solution 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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