Correlation Between Korea New and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Korea New 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 Korea New and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Sam Yang Foods, you can compare the effects of market volatilities on Korea New 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 Korea New with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Sam Yang.
Diversification Opportunities for Korea New and Sam Yang
Significant diversification
The 3 months correlation between Korea and Sam is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network 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 Korea New 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 Korea New Network 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 Korea New i.e., Korea New and Sam Yang go up and down completely randomly.
Pair Corralation between Korea New and Sam Yang
Assuming the 90 days trading horizon Korea New is expected to generate 9.04 times less return on investment than Sam Yang. But when comparing it to its historical volatility, Korea New Network is 1.48 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 0.2 of returns per unit of risk over similar time horizon. If you would invest 59,677,100 in Sam Yang Foods on December 4, 2024 and sell it today you would earn a total of 26,322,900 from holding Sam Yang Foods or generate 44.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Korea New Network vs. Sam Yang Foods
Performance |
Timeline |
Korea New Network |
Sam Yang Foods |
Korea New and Sam Yang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Korea New and Sam Yang
The main advantage of trading using opposite Korea New and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New 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.Korea New vs. Aprogen Healthcare Games | Korea New vs. Korean Drug Co | Korea New vs. CU Medical Systems | Korea New vs. Jeju Beer Co |
Sam Yang vs. EBEST Investment Securities | Sam Yang vs. Mobile Appliance | Sam Yang vs. Daol Investment Securities | Sam Yang vs. Samyung Trading 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |