Correlation Between Dongbu Insurance and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Dongbu Insurance and Sam Yang 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 Dongbu Insurance and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbu Insurance Co and Sam Yang Foods, you can compare the effects of market volatilities on Dongbu Insurance and Sam Yang 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 Dongbu Insurance with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbu Insurance and Sam Yang.
Diversification Opportunities for Dongbu Insurance and Sam Yang
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dongbu and Sam is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dongbu Insurance Co and Sam Yang Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Yang Foods and Dongbu Insurance 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 Dongbu Insurance Co are associated (or correlated) with Sam Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Yang Foods has no effect on the direction of Dongbu Insurance i.e., Dongbu Insurance and Sam Yang go up and down completely randomly.
Pair Corralation between Dongbu Insurance and Sam Yang
Assuming the 90 days trading horizon Dongbu Insurance Co is expected to under-perform the Sam Yang. But the stock apears to be less risky and, when comparing its historical volatility, Dongbu Insurance Co is 1.5 times less risky than Sam Yang. The stock trades about -0.08 of its potential returns per unit of risk. The Sam Yang Foods is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 74,845,900 in Sam Yang Foods on December 11, 2024 and sell it today you would earn a total of 14,854,100 from holding Sam Yang Foods or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbu Insurance Co vs. Sam Yang Foods
Performance |
| Timeline |
| Dongbu Insurance |
| Sam Yang Foods |
Dongbu Insurance and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbu Insurance and Sam Yang
The main advantage of trading using opposite Dongbu Insurance and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbu Insurance position performs unexpectedly, Sam Yang 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 Sam Yang will offset losses from the drop in Sam Yang's long position.| Dongbu Insurance vs. DONGKUK TED METAL | Dongbu Insurance vs. Atinum Investment Co | Dongbu Insurance vs. Coloray International Investment | Dongbu Insurance vs. Daejung Chemicals Metals |
| Sam Yang vs. Korea Air Svc | Sam Yang vs. ITM Semiconductor Co | Sam Yang vs. Seers Technology | Sam Yang vs. Hotel Shilla 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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