Correlation Between Sam Yang and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Youngsin Metal 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 Sam Yang and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sam Yang Foods and Youngsin Metal Industrial, you can compare the effects of market volatilities on Sam Yang and Youngsin Metal 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 Sam Yang with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Youngsin Metal.
Diversification Opportunities for Sam Yang and Youngsin Metal
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and Youngsin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial and Sam Yang 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 Sam Yang Foods are associated (or correlated) with Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Sam Yang i.e., Sam Yang and Youngsin Metal go up and down completely randomly.
Pair Corralation between Sam Yang and Youngsin Metal
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 1.36 times more return on investment than Youngsin Metal. However, Sam Yang is 1.36 times more volatile than Youngsin Metal Industrial. It trades about 0.15 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.13 per unit of risk. If you would invest 51,700,000 in Sam Yang Foods on September 15, 2024 and sell it today you would earn a total of 17,000,000 from holding Sam Yang Foods or generate 32.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sam Yang Foods vs. Youngsin Metal Industrial
Performance |
Timeline |
Sam Yang Foods |
Youngsin Metal Industrial |
Sam Yang and Youngsin Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sam Yang and Youngsin Metal
The main advantage of trading using opposite Sam Yang and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.Sam Yang vs. Netmarble Games Corp | Sam Yang vs. GS Engineering Construction | Sam Yang vs. Dongwoo Farm To | Sam Yang vs. Kyeryong Construction Industrial |
Youngsin Metal vs. Sam Yang Foods | Youngsin Metal vs. Jeju Beer Co | Youngsin Metal vs. Daejung Chemicals Metals | Youngsin Metal vs. Daiyang Metal 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |