Correlation Between Samlip General and Young Poong
Can any of the company-specific risk be diversified away by investing in both Samlip General and Young Poong 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 Samlip General and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Young Poong Corp, you can compare the effects of market volatilities on Samlip General and Young Poong 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 Samlip General with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Young Poong.
Diversification Opportunities for Samlip General and Young Poong
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samlip and Young is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and Samlip General 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 Samlip General Foods are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Corp has no effect on the direction of Samlip General i.e., Samlip General and Young Poong go up and down completely randomly.
Pair Corralation between Samlip General and Young Poong
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the Young Poong. But the stock apears to be less risky and, when comparing its historical volatility, Samlip General Foods is 2.87 times less risky than Young Poong. The stock trades about -0.05 of its potential returns per unit of risk. The Young Poong Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 49,833,300 in Young Poong Corp on November 7, 2024 and sell it today you would lose (8,033,300) from holding Young Poong Corp or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Young Poong Corp
Performance |
| Timeline |
| Samlip General Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Young Poong Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Samlip General and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Young Poong
The main advantage of trading using opposite Samlip General and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Samlip General vs. Asia Technology Co | Samlip General vs. Bosung Power Technology | Samlip General vs. Korea Plasma Technology | Samlip General vs. People Technology |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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