Correlation Between Samlip General and Seoul Food
Can any of the company-specific risk be diversified away by investing in both Samlip General and Seoul Food 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 Seoul Food 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 Seoul Food Industrial, you can compare the effects of market volatilities on Samlip General and Seoul Food 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 Seoul Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Seoul Food.
Diversification Opportunities for Samlip General and Seoul Food
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Samlip and Seoul is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Seoul Food Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Food Industrial 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 Seoul Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Food Industrial has no effect on the direction of Samlip General i.e., Samlip General and Seoul Food go up and down completely randomly.
Pair Corralation between Samlip General and Seoul Food
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 0.97 times more return on investment than Seoul Food. However, Samlip General Foods is 1.03 times less risky than Seoul Food. It trades about -0.04 of its potential returns per unit of risk. Seoul Food Industrial is currently generating about -0.04 per unit of risk. If you would invest 6,518,229 in Samlip General Foods on August 29, 2024 and sell it today you would lose (1,743,229) from holding Samlip General Foods or give up 26.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Seoul Food Industrial
Performance |
| Timeline |
| Samlip General Foods |
| Seoul Food Industrial |
Samlip General and Seoul Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Seoul Food
The main advantage of trading using opposite Samlip General and Seoul Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Seoul Food 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 Seoul Food will offset losses from the drop in Seoul Food's long position.| Samlip General vs. AptaBio Therapeutics | Samlip General vs. Daewoo SBI SPAC | Samlip General vs. Dream Security co | Samlip General vs. Microfriend |
| Seoul Food vs. AptaBio Therapeutics | Seoul Food vs. Daewoo SBI SPAC | Seoul Food vs. Dream Security co | Seoul Food vs. Microfriend |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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