Correlation Between Tuksu Engineering and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and Samyang Foods 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 Tuksu Engineering and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuksu Engineering ConstructionLtd and Samyang Foods Co, you can compare the effects of market volatilities on Tuksu Engineering and Samyang Foods 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 Tuksu Engineering with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and Samyang Foods.
Diversification Opportunities for Tuksu Engineering and Samyang Foods
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tuksu and Samyang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods and Tuksu Engineering 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 Tuksu Engineering ConstructionLtd are associated (or correlated) with Samyang Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyang Foods has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and Samyang Foods go up and down completely randomly.
Pair Corralation between Tuksu Engineering and Samyang Foods
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to under-perform the Samyang Foods. But the stock apears to be less risky and, when comparing its historical volatility, Tuksu Engineering ConstructionLtd is 1.35 times less risky than Samyang Foods. The stock trades about -0.09 of its potential returns per unit of risk. The Samyang Foods Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 72,900,000 in Samyang Foods Co on October 17, 2024 and sell it today you would earn a total of 2,600,000 from holding Samyang Foods Co or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. Samyang Foods Co
Performance |
| Timeline |
| Tuksu Engineering |
| Samyang Foods |
Tuksu Engineering and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and Samyang Foods
The main advantage of trading using opposite Tuksu Engineering and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, Samyang Foods 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 Samyang Foods will offset losses from the drop in Samyang Foods' long position.| Tuksu Engineering vs. Hyundai Industrial Co | Tuksu Engineering vs. Industrial Bank | Tuksu Engineering vs. Hanjoo Light Metal | Tuksu Engineering vs. Daejung Chemicals Metals |
| Samyang Foods vs. Tuksu Engineering ConstructionLtd | Samyang Foods vs. GS Engineering Construction | Samyang Foods vs. Miwon Chemical | Samyang Foods vs. Namhae Chemical |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |