Correlation Between Dream Security and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Dream Security 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 Dream Security and Samyang Foods 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 Samyang Foods Co, you can compare the effects of market volatilities on Dream Security 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 Dream Security with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Security and Samyang Foods.
Diversification Opportunities for Dream Security and Samyang Foods
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dream and Samyang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dream Security co and Samyang Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyang 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 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 Dream Security i.e., Dream Security and Samyang Foods go up and down completely randomly.
Pair Corralation between Dream Security and Samyang Foods
Assuming the 90 days trading horizon Dream Security co is expected to under-perform the Samyang Foods. But the stock apears to be less risky and, when comparing its historical volatility, Dream Security co is 1.31 times less risky than Samyang Foods. The stock trades about -0.05 of its potential returns per unit of risk. The Samyang Foods Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 53,800,000 in Samyang Foods Co on August 25, 2024 and sell it today you would lose (600,000) from holding Samyang Foods Co or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dream Security co vs. Samyang Foods Co
Performance |
| Timeline |
| Dream Security co |
| Samyang Foods |
Dream Security and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Security and Samyang Foods
The main advantage of trading using opposite Dream Security and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Security 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.| Dream Security vs. MetaLabs Co | Dream Security vs. Hanjoo Light Metal | Dream Security vs. Hannong Chemicals | Dream Security vs. Youngsin Metal Industrial |
| Samyang Foods vs. Dongil Technology | Samyang Foods vs. iNtRON Biotechnology | Samyang Foods vs. E Investment Development | Samyang Foods vs. Korea Investment Holdings |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |