Correlation Between Moadata and Samyang Foods
Can any of the company-specific risk be diversified away by investing in both Moadata 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 Moadata and Samyang Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moadata Co and Samyang Foods Co, you can compare the effects of market volatilities on Moadata 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 Moadata with a short position of Samyang Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moadata and Samyang Foods.
Diversification Opportunities for Moadata and Samyang Foods
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Moadata and Samyang is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Moadata 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 Moadata 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 Moadata 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 Moadata i.e., Moadata and Samyang Foods go up and down completely randomly.
Pair Corralation between Moadata and Samyang Foods
Assuming the 90 days trading horizon Moadata is expected to generate 1.84 times less return on investment than Samyang Foods. But when comparing it to its historical volatility, Moadata Co is 1.02 times less risky than Samyang Foods. It trades about 0.1 of its potential returns per unit of risk. Samyang Foods Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 68,700,000 in Samyang Foods Co on October 14, 2024 and sell it today you would earn a total of 6,300,000 from holding Samyang Foods Co or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moadata Co vs. Samyang Foods Co
Performance |
| Timeline |
| Moadata |
| Samyang Foods |
Moadata and Samyang Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moadata and Samyang Foods
The main advantage of trading using opposite Moadata and Samyang Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moadata 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.| Moadata vs. MediaZen | Moadata vs. Samyoung Electronics Co | Moadata vs. SungMoon Electronics Co | Moadata vs. Shinil Electronics Co |
| Samyang Foods vs. Korea Shipbuilding Offshore | Samyang Foods vs. DRB Industrial Co | Samyang Foods vs. Dongil Metal Co | Samyang Foods vs. Shinil Industrial 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 Positions Ratings module to 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.
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