Correlation Between INtRON Biotechnology and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology 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 INtRON Biotechnology and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Samyang Foods Co, you can compare the effects of market volatilities on INtRON Biotechnology 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 INtRON Biotechnology with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Samyang Foods.
Diversification Opportunities for INtRON Biotechnology and Samyang Foods
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between INtRON and Samyang is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods and INtRON Biotechnology 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 iNtRON Biotechnology 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 INtRON Biotechnology i.e., INtRON Biotechnology and Samyang Foods go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Samyang Foods
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to under-perform the Samyang Foods. In addition to that, INtRON Biotechnology is 1.04 times more volatile than Samyang Foods Co. It trades about 0.0 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 11,645,300 in Samyang Foods Co on August 29, 2024 and sell it today you would earn a total of 40,254,700 from holding Samyang Foods Co or generate 345.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Samyang Foods Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| Samyang Foods |
INtRON Biotechnology and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Samyang Foods
The main advantage of trading using opposite INtRON Biotechnology and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology 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.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Busan Industrial Co | INtRON Biotechnology vs. Busan Ind | INtRON Biotechnology vs. Mirae Asset Daewoo |
| Samyang Foods vs. AptaBio Therapeutics | Samyang Foods vs. Daewoo SBI SPAC | Samyang Foods vs. Dream Security co | Samyang Foods vs. Microfriend |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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