Correlation Between DataSolution and Sam Yang

Can any of the company-specific risk be diversified away by investing in both DataSolution 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 DataSolution and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DataSolution and Sam Yang Foods, you can compare the effects of market volatilities on DataSolution 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 DataSolution with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of DataSolution and Sam Yang.

Diversification Opportunities for DataSolution and Sam Yang

-0.24

Correlation Coefficient

DataSolution  Sam Yang

Very good diversification

The 3 months correlation between DataSolution and Sam is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding DataSolution 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 DataSolution 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 DataSolution 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 DataSolution i.e., DataSolution and Sam Yang go up and down completely randomly.

Pair Corralation between DataSolution and Sam Yang

Assuming the 90 days trading horizon DataSolution is expected to under-perform the Sam Yang. In addition to that, DataSolution is 1.04 times more volatile than Sam Yang Foods. It trades about -0.01 of its total potential returns per unit of risk. Sam Yang Foods is currently generating about 0.19 per unit of volatility. If you would invest  52,400,000  in Sam Yang Foods on October 8, 2024 and sell it today you would earn a total of  21,700,000  from holding Sam Yang Foods or generate 41.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DataSolution  vs.  Sam Yang Foods

DataSolution

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DataSolution has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, DataSolution is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sam Yang Foods

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sam Yang Foods are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sam Yang sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DataSolution and Sam Yang

The main advantage of trading using opposite DataSolution and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DataSolution 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.

The idea behind DataSolution and Sam Yang Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.