Correlation Between Foodnamoo and Samlip General
Can any of the company-specific risk be diversified away by investing in both Foodnamoo and Samlip General 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 Foodnamoo and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foodnamoo and Samlip General Foods, you can compare the effects of market volatilities on Foodnamoo and Samlip General 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 Foodnamoo with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foodnamoo and Samlip General.
Diversification Opportunities for Foodnamoo and Samlip General
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Foodnamoo and Samlip is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Foodnamoo and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Foodnamoo 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 Foodnamoo are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Foodnamoo i.e., Foodnamoo and Samlip General go up and down completely randomly.
Pair Corralation between Foodnamoo and Samlip General
Assuming the 90 days trading horizon Foodnamoo is expected to generate 1.76 times more return on investment than Samlip General. However, Foodnamoo is 1.76 times more volatile than Samlip General Foods. It trades about -0.02 of its potential returns per unit of risk. Samlip General Foods is currently generating about -0.12 per unit of risk. If you would invest 323,000 in Foodnamoo on August 27, 2024 and sell it today you would lose (6,500) from holding Foodnamoo or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foodnamoo vs. Samlip General Foods
Performance |
| Timeline |
| Foodnamoo |
| Samlip General Foods |
Foodnamoo and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foodnamoo and Samlip General
The main advantage of trading using opposite Foodnamoo and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foodnamoo position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Foodnamoo vs. Lindeman Asia Investment | Foodnamoo vs. Golden Bridge Investment | Foodnamoo vs. Playgram Co | Foodnamoo vs. E Investment Development |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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