Correlation Between Samyang Foods and Cytogen
Can any of the company-specific risk be diversified away by investing in both Samyang Foods and Cytogen 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 Samyang Foods and Cytogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyang Foods Co and Cytogen, you can compare the effects of market volatilities on Samyang Foods and Cytogen 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 Samyang Foods with a short position of Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyang Foods and Cytogen.
Diversification Opportunities for Samyang Foods and Cytogen
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samyang and Cytogen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samyang Foods Co and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen and Samyang Foods 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 Samyang Foods Co are associated (or correlated) with Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Samyang Foods i.e., Samyang Foods and Cytogen go up and down completely randomly.
Pair Corralation between Samyang Foods and Cytogen
Assuming the 90 days trading horizon Samyang Foods Co is expected to generate 0.77 times more return on investment than Cytogen. However, Samyang Foods Co is 1.3 times less risky than Cytogen. It trades about 0.14 of its potential returns per unit of risk. Cytogen is currently generating about -0.13 per unit of risk. If you would invest 47,000,000 in Samyang Foods Co on September 6, 2024 and sell it today you would earn a total of 12,800,000 from holding Samyang Foods Co or generate 27.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samyang Foods Co vs. Cytogen
Performance |
Timeline |
Samyang Foods |
Cytogen |
Samyang Foods and Cytogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samyang Foods and Cytogen
The main advantage of trading using opposite Samyang Foods and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyang Foods position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.Samyang Foods vs. Wonil Special Steel | Samyang Foods vs. Samsung Life Insurance | Samyang Foods vs. MEDIANA CoLtd | Samyang Foods vs. Samhyun Steel Co |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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