Correlation Between Lotte Non-Life and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Lotte Non-Life 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 Lotte Non-Life and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Non Life Insurance and Yujin Robot Co, you can compare the effects of market volatilities on Lotte Non-Life 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 Lotte Non-Life with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Non-Life and Yujin Robot.
Diversification Opportunities for Lotte Non-Life and Yujin Robot
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lotte and Yujin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Non Life Insurance and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Lotte Non-Life 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 Lotte Non Life Insurance 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 Lotte Non-Life i.e., Lotte Non-Life and Yujin Robot go up and down completely randomly.
Pair Corralation between Lotte Non-Life and Yujin Robot
Assuming the 90 days trading horizon Lotte Non Life Insurance is expected to generate 0.62 times more return on investment than Yujin Robot. However, Lotte Non Life Insurance is 1.61 times less risky than Yujin Robot. It trades about 0.05 of its potential returns per unit of risk. Yujin Robot Co is currently generating about 0.03 per unit of risk. If you would invest 200,000 in Lotte Non Life Insurance on September 14, 2024 and sell it today you would earn a total of 5,000 from holding Lotte Non Life Insurance or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Non Life Insurance vs. Yujin Robot Co
Performance |
| Timeline |
| Lotte Non Life |
| Yujin Robot |
Lotte Non-Life and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Non-Life and Yujin Robot
The main advantage of trading using opposite Lotte Non-Life and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Non-Life 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.| Lotte Non-Life vs. Samsung Electronics Co | Lotte Non-Life vs. Samsung Electronics Co | Lotte Non-Life vs. SK Hynix | Lotte Non-Life vs. POSCO Holdings |
| Yujin Robot vs. Kbi Metal Co | Yujin Robot vs. Lotte Non Life Insurance | Yujin Robot vs. Shinsegae Information Communication | Yujin Robot vs. Shinhan Inverse Copper |
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 CEOs Directory module to screen CEOs from public companies around the world.
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