Correlation Between Samhyun Steel and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Samhyun Steel 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 Samhyun Steel and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhyun Steel Co and Sam Yang Foods, you can compare the effects of market volatilities on Samhyun Steel 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 Samhyun Steel with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhyun Steel and Sam Yang.
Diversification Opportunities for Samhyun Steel and Sam Yang
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samhyun and Sam is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Samhyun Steel 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 Samhyun Steel 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 Samhyun Steel 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 Samhyun Steel i.e., Samhyun Steel and Sam Yang go up and down completely randomly.
Pair Corralation between Samhyun Steel and Sam Yang
Assuming the 90 days trading horizon Samhyun Steel is expected to generate 25.25 times less return on investment than Sam Yang. But when comparing it to its historical volatility, Samhyun Steel Co is 2.65 times less risky than Sam Yang. It trades about 0.01 of its potential returns per unit of risk. Sam Yang Foods is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 12,616,800 in Sam Yang Foods on September 12, 2024 and sell it today you would earn a total of 54,283,200 from holding Sam Yang Foods or generate 430.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhyun Steel Co vs. Sam Yang Foods
Performance |
| Timeline |
| Samhyun Steel |
| Sam Yang Foods |
Samhyun Steel and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhyun Steel and Sam Yang
The main advantage of trading using opposite Samhyun Steel and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhyun Steel 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.| Samhyun Steel vs. Keum Kang Steel | Samhyun Steel vs. PJ Metal Co | Samhyun Steel vs. Gyeongnam Steel Co | Samhyun Steel vs. Jeil Steel Mfg |
| Sam Yang vs. Samhyun Steel Co | Sam Yang vs. Hanjoo Light Metal | Sam Yang vs. Finebesteel | Sam Yang vs. Han Kook Steel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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