Correlation Between Alton Sports and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Alton Sports and Sam Yang 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 Alton Sports and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and Sam Yang Foods, you can compare the effects of market volatilities on Alton Sports and Sam Yang 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 Alton Sports with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and Sam Yang.
Diversification Opportunities for Alton Sports and Sam Yang
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alton and Sam is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and Sam Yang Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Yang Foods and Alton Sports 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 Alton Sports CoLtd are associated (or correlated) with Sam Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Yang Foods has no effect on the direction of Alton Sports i.e., Alton Sports and Sam Yang go up and down completely randomly.
Pair Corralation between Alton Sports and Sam Yang
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to generate 0.44 times more return on investment than Sam Yang. However, Alton Sports CoLtd is 2.29 times less risky than Sam Yang. It trades about 0.24 of its potential returns per unit of risk. Sam Yang Foods is currently generating about -0.19 per unit of risk. If you would invest 144,400 in Alton Sports CoLtd on October 30, 2024 and sell it today you would earn a total of 5,700 from holding Alton Sports CoLtd or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. Sam Yang Foods
Performance |
| Timeline |
| Alton Sports CoLtd |
| Sam Yang Foods |
Alton Sports and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and Sam Yang
The main advantage of trading using opposite Alton Sports and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports position performs unexpectedly, Sam Yang 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 Sam Yang will offset losses from the drop in Sam Yang's long position.| Alton Sports vs. Hanil Chemical Ind | Alton Sports vs. LG Household Healthcare | Alton Sports vs. Tae Kyung Chemical | Alton Sports vs. Isu Chemical Co |
| Sam Yang vs. Wireless Power Amplifier | Sam Yang vs. TK Chemical | Sam Yang vs. Youl Chon Chemical | Sam Yang vs. Innowireless 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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