Correlation Between Sam Yang and Microfriend
Can any of the company-specific risk be diversified away by investing in both Sam Yang and Microfriend 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 Microfriend 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 Microfriend, you can compare the effects of market volatilities on Sam Yang and Microfriend 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 Microfriend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Microfriend.
Diversification Opportunities for Sam Yang and Microfriend
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sam and Microfriend is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods and Microfriend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microfriend 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 Microfriend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microfriend has no effect on the direction of Sam Yang i.e., Sam Yang and Microfriend go up and down completely randomly.
Pair Corralation between Sam Yang and Microfriend
Assuming the 90 days trading horizon Sam Yang Foods is expected to generate 0.67 times more return on investment than Microfriend. However, Sam Yang Foods is 1.5 times less risky than Microfriend. It trades about 0.22 of its potential returns per unit of risk. Microfriend is currently generating about -0.08 per unit of risk. If you would invest 54,400,000 in Sam Yang Foods on September 23, 2024 and sell it today you would earn a total of 20,400,000 from holding Sam Yang Foods or generate 37.5% 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. Microfriend
Performance |
Timeline |
Sam Yang Foods |
Microfriend |
Sam Yang and Microfriend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sam Yang and Microfriend
The main advantage of trading using opposite Sam Yang and Microfriend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang position performs unexpectedly, Microfriend 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 Microfriend will offset losses from the drop in Microfriend's long position.Sam Yang vs. Woori Financial Group | Sam Yang vs. Jb Financial | Sam Yang vs. Nh Investment And | Sam Yang vs. Kumho Petro Chemical |
Microfriend vs. Sam Yang Foods | Microfriend vs. Songwon Industrial Co | Microfriend vs. Sempio Foods Co | Microfriend vs. PJ 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |