Correlation Between Koryo Credit and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Koryo Credit 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 Koryo Credit and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Samyang Foods Co, you can compare the effects of market volatilities on Koryo Credit 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 Koryo Credit with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Samyang Foods.
Diversification Opportunities for Koryo Credit and Samyang Foods
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koryo and Samyang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods and Koryo Credit 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 Koryo Credit Information 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 Koryo Credit i.e., Koryo Credit and Samyang Foods go up and down completely randomly.
Pair Corralation between Koryo Credit and Samyang Foods
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the Samyang Foods. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 4.38 times less risky than Samyang Foods. The stock trades about -0.2 of its potential returns per unit of risk. The Samyang Foods Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 68,700,000 in Samyang Foods Co on October 14, 2024 and sell it today you would earn a total of 6,300,000 from holding Samyang Foods Co or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Samyang Foods Co
Performance |
| Timeline |
| Koryo Credit Information |
| Samyang Foods |
Koryo Credit and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Samyang Foods
The main advantage of trading using opposite Koryo Credit and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit 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.| Koryo Credit vs. Hanwha Life Insurance | Koryo Credit vs. Daesung Industrial Co | Koryo Credit vs. Namhwa Industrial Co | Koryo Credit vs. Hyundai Industrial Co |
| Samyang Foods vs. Korea Shipbuilding Offshore | Samyang Foods vs. DRB Industrial Co | Samyang Foods vs. Dongil Metal Co | Samyang Foods vs. Shinil Industrial Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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