Correlation Between Samyang Foods and CU Tech
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and CU Tech 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 CU Tech 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 CU Tech Corp, you can compare the effects of market volatilities on Samyang Foods and CU Tech 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 CU Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and CU Tech.
Diversification Opportunities for Samyang Foods and CU Tech
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samyang and 376290 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and CU Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Tech 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 CU Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Tech Corp has no effect on the direction of Samyang Foods i.e., Samyang Foods and CU Tech go up and down completely randomly.
Pair Corralation between Samyang Foods and CU Tech
Assuming the 90 days trading horizon Samyang Foods Co is expected to under-perform the CU Tech. In addition to that, Samyang Foods is 2.36 times more volatile than CU Tech Corp. It trades about -0.19 of its total potential returns per unit of risk. CU Tech Corp is currently generating about 0.08 per unit of volatility. If you would invest 291,500 in CU Tech Corp on November 3, 2024 and sell it today you would earn a total of 3,500 from holding CU Tech Corp or generate 1.2% 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. CU Tech Corp
Performance |
| Timeline |
| Samyang Foods |
| CU Tech Corp |
Samyang Foods and CU Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyang Foods and CU Tech
The main advantage of trading using opposite Samyang Foods and CU Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, CU Tech 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 CU Tech will offset losses from the drop in CU Tech's long position.| Samyang Foods vs. DSC Investment | Samyang Foods vs. KTB Investment Securities | Samyang Foods vs. Korea Investment Holdings | Samyang Foods vs. Korean Drug Co |
| CU Tech vs. SK Hynix | CU Tech vs. LX Semicon Co | CU Tech vs. Tokai Carbon Korea | CU Tech vs. People Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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