Correlation Between Daishin Information and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Daishin Information 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 Daishin Information and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and Sam Yang Foods, you can compare the effects of market volatilities on Daishin Information 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 Daishin Information with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Sam Yang.
Diversification Opportunities for Daishin Information and Sam Yang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Daishin and Sam is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat 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 Daishin Information 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 Daishin Information Communications 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 Daishin Information i.e., Daishin Information and Sam Yang go up and down completely randomly.
Pair Corralation between Daishin Information and Sam Yang
Assuming the 90 days trading horizon Daishin Information is expected to generate 1.53 times less return on investment than Sam Yang. In addition to that, Daishin Information is 2.52 times more volatile than Sam Yang Foods. It trades about 0.04 of its total potential returns per unit of risk. Sam Yang Foods is currently generating about 0.16 per unit of volatility. If you would invest 68,300,000 in Sam Yang Foods on October 12, 2024 and sell it today you would earn a total of 5,700,000 from holding Sam Yang Foods or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Sam Yang Foods
Performance |
| Timeline |
| Daishin Information |
| Sam Yang Foods |
Daishin Information and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Sam Yang
The main advantage of trading using opposite Daishin Information and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information 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.| Daishin Information vs. Formetal Co | Daishin Information vs. Aprogen Healthcare Games | Daishin Information vs. Eagon Industrial Co | Daishin Information vs. Daejung Chemicals Metals |
| Sam Yang vs. Daishin Information Communications | Sam Yang vs. Hanjin Transportation Co | Sam Yang vs. Iljin Display | Sam Yang vs. Korea Alcohol Industrial |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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