Correlation Between SEOJEON ELECTRIC and Sam Yang
Can any of the company-specific risk be diversified away by investing in both SEOJEON ELECTRIC 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 SEOJEON ELECTRIC and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOJEON ELECTRIC MACHINERY and Sam Yang Foods, you can compare the effects of market volatilities on SEOJEON ELECTRIC 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 SEOJEON ELECTRIC with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOJEON ELECTRIC and Sam Yang.
Diversification Opportunities for SEOJEON ELECTRIC and Sam Yang
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SEOJEON and Sam is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SEOJEON ELECTRIC MACHINERY 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 SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY 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 SEOJEON ELECTRIC i.e., SEOJEON ELECTRIC and Sam Yang go up and down completely randomly.
Pair Corralation between SEOJEON ELECTRIC and Sam Yang
Assuming the 90 days trading horizon SEOJEON ELECTRIC MACHINERY is expected to under-perform the Sam Yang. In addition to that, SEOJEON ELECTRIC is 1.39 times more volatile than Sam Yang Foods. It trades about -0.01 of its total potential returns per unit of risk. Sam Yang Foods is currently generating about 0.14 per unit of volatility. If you would invest 56,800,000 in Sam Yang Foods on September 13, 2024 and sell it today you would earn a total of 11,500,000 from holding Sam Yang Foods or generate 20.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEOJEON ELECTRIC MACHINERY vs. Sam Yang Foods
Performance |
| Timeline |
| SEOJEON ELECTRIC MAC |
| Sam Yang Foods |
SEOJEON ELECTRIC and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEOJEON ELECTRIC and Sam Yang
The main advantage of trading using opposite SEOJEON ELECTRIC and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOJEON ELECTRIC 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.| SEOJEON ELECTRIC vs. Eagle Veterinary Technology | SEOJEON ELECTRIC vs. Lotte Non Life Insurance | SEOJEON ELECTRIC vs. Dongbu Insurance Co | SEOJEON ELECTRIC vs. Narae Nanotech Corp |
| Sam Yang vs. GS Engineering Construction | Sam Yang vs. Nice Information Telecommunication | Sam Yang vs. SEOJEON ELECTRIC MACHINERY | Sam Yang vs. Sungdo Engineering Construction |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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