Correlation Between Dream Security and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Dream Security 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 Dream Security and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dream Security co and Sam Yang Foods, you can compare the effects of market volatilities on Dream Security 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 Dream Security with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Security and Sam Yang.
Diversification Opportunities for Dream Security and Sam Yang
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dream and Sam is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dream Security 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 Dream Security 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 Dream Security 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 Dream Security i.e., Dream Security and Sam Yang go up and down completely randomly.
Pair Corralation between Dream Security and Sam Yang
Assuming the 90 days trading horizon Dream Security co is expected to under-perform the Sam Yang. But the stock apears to be less risky and, when comparing its historical volatility, Dream Security co is 1.34 times less risky than Sam Yang. The stock trades about -0.01 of its potential returns per unit of risk. The Sam Yang Foods is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 52,200,000 in Sam Yang Foods on August 29, 2024 and sell it today you would lose (300,000) from holding Sam Yang Foods or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Security co vs. Sam Yang Foods
Performance |
| Timeline |
| Dream Security co |
| Sam Yang Foods |
Dream Security and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Security and Sam Yang
The main advantage of trading using opposite Dream Security and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Security 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.| Dream Security vs. VAIV Co | Dream Security vs. FLITTO Inc | Dream Security vs. Innodep | Dream Security vs. WISE iTech Co |
| Sam Yang vs. AptaBio Therapeutics | Sam Yang vs. Daewoo SBI SPAC | Sam Yang vs. Dream Security co | Sam Yang vs. Microfriend |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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