Correlation Between Daelim Industrial and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Daelim Industrial and Yujin Robot 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 Daelim Industrial and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Industrial Co and Yujin Robot Co, you can compare the effects of market volatilities on Daelim Industrial and Yujin Robot 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 Daelim Industrial with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Industrial and Yujin Robot.
Diversification Opportunities for Daelim Industrial and Yujin Robot
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daelim and Yujin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Industrial Co and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Daelim Industrial 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 Daelim Industrial Co are associated (or correlated) with Yujin Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yujin Robot has no effect on the direction of Daelim Industrial i.e., Daelim Industrial and Yujin Robot go up and down completely randomly.
Pair Corralation between Daelim Industrial and Yujin Robot
Assuming the 90 days trading horizon Daelim Industrial is expected to generate 8.58 times less return on investment than Yujin Robot. But when comparing it to its historical volatility, Daelim Industrial Co is 3.86 times less risky than Yujin Robot. It trades about 0.07 of its potential returns per unit of risk. Yujin Robot Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 602,000 in Yujin Robot Co on October 20, 2024 and sell it today you would earn a total of 100,000 from holding Yujin Robot Co or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Industrial Co vs. Yujin Robot Co
Performance |
| Timeline |
| Daelim Industrial |
| Yujin Robot |
Daelim Industrial and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Industrial and Yujin Robot
The main advantage of trading using opposite Daelim Industrial and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Industrial position performs unexpectedly, Yujin Robot 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 Yujin Robot will offset losses from the drop in Yujin Robot's long position.| Daelim Industrial vs. Woori Technology | Daelim Industrial vs. Koh Young Technology | Daelim Industrial vs. Air Busan Co | Daelim Industrial vs. ITM Semiconductor Co |
| Yujin Robot vs. Korean Reinsurance Co | Yujin Robot vs. Samsung Life Insurance | Yujin Robot vs. T3 Entertainment Co | Yujin Robot vs. Dongbu Insurance 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 Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |