Correlation Between SBI Investment and Sam Yang
Can any of the company-specific risk be diversified away by investing in both SBI Investment 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 SBI Investment and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Investment KOREA and Sam Yang Foods, you can compare the effects of market volatilities on SBI Investment 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 SBI Investment with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Investment and Sam Yang.
Diversification Opportunities for SBI Investment and Sam Yang
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBI and Sam is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SBI Investment KOREA 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 SBI Investment 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 SBI Investment KOREA 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 SBI Investment i.e., SBI Investment and Sam Yang go up and down completely randomly.
Pair Corralation between SBI Investment and Sam Yang
Assuming the 90 days trading horizon SBI Investment KOREA is expected to generate 0.82 times more return on investment than Sam Yang. However, SBI Investment KOREA is 1.22 times less risky than Sam Yang. It trades about 0.1 of its potential returns per unit of risk. Sam Yang Foods is currently generating about 0.03 per unit of risk. If you would invest 69,100 in SBI Investment KOREA on August 31, 2024 and sell it today you would earn a total of 3,800 from holding SBI Investment KOREA or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Investment KOREA vs. Sam Yang Foods
Performance |
| Timeline |
| SBI Investment KOREA |
| Sam Yang Foods |
SBI Investment and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Investment and Sam Yang
The main advantage of trading using opposite SBI Investment and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Investment 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.| SBI Investment vs. Samsung Electronics Co | SBI Investment vs. Samsung Electronics Co | SBI Investment vs. KB Financial Group | SBI Investment vs. Shinhan Financial Group |
| Sam Yang vs. Korea Real Estate | Sam Yang vs. Korea Ratings Co | Sam Yang vs. IQuest Co | Sam Yang vs. Wonbang Tech 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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