Correlation Between Daesung Hi and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Daesung Hi 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 Daesung Hi and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Hi Tech Co and Sam Yang Foods, you can compare the effects of market volatilities on Daesung Hi 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 Daesung Hi with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and Sam Yang.
Diversification Opportunities for Daesung Hi and Sam Yang
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daesung and Sam is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech Co 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 Daesung 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 Daesung Hi Tech Co 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 Daesung Hi i.e., Daesung Hi and Sam Yang go up and down completely randomly.
Pair Corralation between Daesung Hi and Sam Yang
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to under-perform the Sam Yang. But the stock apears to be less risky and, when comparing its historical volatility, Daesung Hi Tech Co is 1.13 times less risky than Sam Yang. The stock trades about -0.17 of its potential returns per unit of risk. The Sam Yang Foods is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 51,900,000 in Sam Yang Foods on October 30, 2024 and sell it today you would earn a total of 19,100,000 from holding Sam Yang Foods or generate 36.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Hi Tech Co vs. Sam Yang Foods
Performance |
| Timeline |
| Daesung Hi Tech |
| Sam Yang Foods |
Daesung Hi and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and Sam Yang
The main advantage of trading using opposite Daesung Hi and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi 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.| Daesung Hi vs. E Investment Development | Daesung Hi vs. Woori Technology Investment | Daesung Hi vs. Sangsangin Investment Securities | Daesung Hi vs. RF Materials 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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