Correlation Between CJ Seafood and Sam Yang
Can any of the company-specific risk be diversified away by investing in both CJ Seafood 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 CJ Seafood and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CJ Seafood Corp and Sam Yang Foods, you can compare the effects of market volatilities on CJ Seafood 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 CJ Seafood with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Sam Yang.
Diversification Opportunities for CJ Seafood and Sam Yang
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 011155 and Sam is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp 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 CJ Seafood 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 CJ Seafood Corp 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 CJ Seafood i.e., CJ Seafood and Sam Yang go up and down completely randomly.
Pair Corralation between CJ Seafood and Sam Yang
Assuming the 90 days trading horizon CJ Seafood Corp is expected to under-perform the Sam Yang. But the stock apears to be less risky and, when comparing its historical volatility, CJ Seafood Corp is 2.56 times less risky than Sam Yang. The stock trades about -0.12 of its potential returns per unit of risk. The Sam Yang Foods is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 54,800,000 in Sam Yang Foods on August 27, 2024 and sell it today you would lose (2,700,000) from holding Sam Yang Foods or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. Sam Yang Foods
Performance |
| Timeline |
| CJ Seafood Corp |
| Sam Yang Foods |
CJ Seafood and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Sam Yang
The main advantage of trading using opposite CJ Seafood and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood 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.| CJ Seafood vs. Busan Industrial Co | CJ Seafood vs. Busan Ind | CJ Seafood vs. Mirae Asset Daewoo | CJ Seafood vs. UNISEM Co |
| Sam Yang vs. Lotte Data Communication | Sam Yang vs. Woorim Machinery Co | Sam Yang vs. Jeong Moon Information | Sam Yang vs. GS Engineering Construction |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |