Correlation Between Hankukpackage and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Hankukpackage 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 Hankukpackage and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Samyang Foods Co, you can compare the effects of market volatilities on Hankukpackage 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 Hankukpackage with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Samyang Foods.
Diversification Opportunities for Hankukpackage and Samyang Foods
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hankukpackage and Samyang is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage 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 Hankukpackage 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 Hankukpackage 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 Hankukpackage i.e., Hankukpackage and Samyang Foods go up and down completely randomly.
Pair Corralation between Hankukpackage and Samyang Foods
Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.27 times more return on investment than Samyang Foods. However, Hankukpackage Co is 3.7 times less risky than Samyang Foods. It trades about -0.61 of its potential returns per unit of risk. Samyang Foods Co is currently generating about -0.19 per unit of risk. If you would invest 179,400 in Hankukpackage Co on November 7, 2024 and sell it today you would lose (11,000) from holding Hankukpackage Co or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Hankukpackage Co vs. Samyang Foods Co
Performance |
| Timeline |
| Hankukpackage |
| Samyang Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Hankukpackage and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Samyang Foods
The main advantage of trading using opposite Hankukpackage and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage 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.The idea behind Hankukpackage Co and Samyang Foods Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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