Correlation Between KakaoBank Corp and Sam Yang
Can any of the company-specific risk be diversified away by investing in both KakaoBank Corp 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 KakaoBank Corp and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KakaoBank Corp and Sam Yang Foods, you can compare the effects of market volatilities on KakaoBank Corp 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 KakaoBank Corp with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of KakaoBank Corp and Sam Yang.
Diversification Opportunities for KakaoBank Corp and Sam Yang
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KakaoBank and Sam is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding KakaoBank Corp 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 KakaoBank Corp 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 KakaoBank Corp 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 KakaoBank Corp i.e., KakaoBank Corp and Sam Yang go up and down completely randomly.
Pair Corralation between KakaoBank Corp and Sam Yang
Assuming the 90 days trading horizon KakaoBank Corp is expected to generate 4.28 times less return on investment than Sam Yang. But when comparing it to its historical volatility, KakaoBank Corp is 1.64 times less risky than Sam Yang. It trades about 0.03 of its potential returns per unit of risk. Sam Yang Foods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 47,150,000 in Sam Yang Foods on August 29, 2024 and sell it today you would earn a total of 4,750,000 from holding Sam Yang Foods or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KakaoBank Corp vs. Sam Yang Foods
Performance |
| Timeline |
| KakaoBank Corp |
| Sam Yang Foods |
KakaoBank Corp and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KakaoBank Corp and Sam Yang
The main advantage of trading using opposite KakaoBank Corp and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KakaoBank Corp 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.| KakaoBank Corp vs. Shinhan Financial Group | KakaoBank Corp vs. Hana Financial | KakaoBank Corp vs. Woori Financial Group | KakaoBank Corp vs. Industrial Bank |
| Sam Yang vs. Daou Data Corp | Sam Yang vs. Moadata Co | Sam Yang vs. PJ Metal Co | Sam Yang vs. Daejung Chemicals Metals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |