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 Precision, 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
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samlip and Young is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Young Poong Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Precision 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 Precision 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 generate 0.73 times more return on investment than Young Poong. However, Samlip General Foods is 1.37 times less risky than Young Poong. It trades about -0.1 of its potential returns per unit of risk. Young Poong Precision is currently generating about -0.43 per unit of risk. If you would invest 4,910,000 in Samlip General Foods on September 3, 2024 and sell it today you would lose (200,000) from holding Samlip General Foods or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Young Poong Precision
Performance |
| Timeline |
| Samlip General Foods |
| Young Poong Precision |
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. Pan Entertainment Co | Samlip General vs. Barunson Entertainment Arts | Samlip General vs. Finebesteel | Samlip General vs. Kaonmedia Co |
| Young Poong vs. Aprogen Healthcare Games | Young Poong vs. Shinsung Delta Tech | Young Poong vs. PH Tech Co | Young Poong vs. Youngchang Chemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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