Correlation Between Insung Information and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Insung Information 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 Insung Information and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insung Information Co and Samyang Foods Co, you can compare the effects of market volatilities on Insung Information 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 Insung Information with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insung Information and Samyang Foods.
Diversification Opportunities for Insung Information and Samyang Foods
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Insung and Samyang is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Insung Information Co and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods and Insung 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 Insung Information Co 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 Insung Information i.e., Insung Information and Samyang Foods go up and down completely randomly.
Pair Corralation between Insung Information and Samyang Foods
Assuming the 90 days trading horizon Insung Information is expected to generate 5.05 times less return on investment than Samyang Foods. In addition to that, Insung Information is 1.4 times more volatile than Samyang Foods Co. It trades about 0.02 of its total potential returns per unit of risk. Samyang Foods Co is currently generating about 0.12 per unit of volatility. If you would invest 11,753,400 in Samyang Foods Co on October 27, 2024 and sell it today you would earn a total of 59,246,600 from holding Samyang Foods Co or generate 504.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insung Information Co vs. Samyang Foods Co
Performance |
| Timeline |
| Insung Information |
| Samyang Foods |
Insung Information and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insung Information and Samyang Foods
The main advantage of trading using opposite Insung Information and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insung Information 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.| Insung Information vs. Samsung Electronics Co | Insung Information vs. Samsung Electronics Co | Insung Information vs. SK Hynix | Insung Information vs. HMM Co |
| Samyang Foods vs. Koryo Credit Information | Samyang Foods vs. Dongbu Insurance Co | Samyang Foods vs. DB Insurance Co | Samyang Foods vs. InfoBank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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