Correlation Between Duksan Hi and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Duksan Hi 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 Duksan Hi and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Samyang Foods Co, you can compare the effects of market volatilities on Duksan Hi 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 Duksan Hi with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Samyang Foods.
Diversification Opportunities for Duksan Hi and Samyang Foods
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duksan and Samyang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang Foods and Duksan Hi 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 Duksan Hi Metal 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 Duksan Hi i.e., Duksan Hi and Samyang Foods go up and down completely randomly.
Pair Corralation between Duksan Hi and Samyang Foods
Assuming the 90 days trading horizon Duksan Hi is expected to generate 1.14 times less return on investment than Samyang Foods. But when comparing it to its historical volatility, Duksan Hi Metal is 1.43 times less risky than Samyang Foods. It trades about 0.16 of its potential returns per unit of risk. Samyang Foods Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 76,500,000 in Samyang Foods Co on November 28, 2024 and sell it today you would earn a total of 11,400,000 from holding Samyang Foods Co or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Samyang Foods Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Samyang Foods |
Duksan Hi and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Samyang Foods
The main advantage of trading using opposite Duksan Hi and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi 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.| Duksan Hi vs. Seoyon Topmetal Co | Duksan Hi vs. Daiyang Metal Co | Duksan Hi vs. Busan Industrial Co | Duksan Hi vs. Hyundai Industrial Co |
| Samyang Foods vs. T3 Entertainment Co | Samyang Foods vs. Infinitt Healthcare Co | Samyang Foods vs. Chorokbaem Healthcare Co | Samyang Foods vs. ChipsMedia |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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