Correlation Between Young Poong and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Young Poong and Samyung Trading 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 Young Poong and Samyung Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Young Poong Corp and Samyung Trading Co, you can compare the effects of market volatilities on Young Poong and Samyung Trading 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 Young Poong with a short position of Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Young Poong and Samyung Trading.
Diversification Opportunities for Young Poong and Samyung Trading
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Young and Samyung is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Young Poong Corp and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading and Young Poong 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 Young Poong Corp are associated (or correlated) with Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Young Poong i.e., Young Poong and Samyung Trading go up and down completely randomly.
Pair Corralation between Young Poong and Samyung Trading
Assuming the 90 days trading horizon Young Poong Corp is expected to generate 1.38 times more return on investment than Samyung Trading. However, Young Poong is 1.38 times more volatile than Samyung Trading Co. It trades about 0.13 of its potential returns per unit of risk. Samyung Trading Co is currently generating about -0.18 per unit of risk. If you would invest 38,481,900 in Young Poong Corp on October 14, 2024 and sell it today you would earn a total of 1,218,100 from holding Young Poong Corp or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Young Poong Corp vs. Samyung Trading Co
Performance |
| Timeline |
| Young Poong Corp |
| Samyung Trading |
Young Poong and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Young Poong and Samyung Trading
The main advantage of trading using opposite Young Poong and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Young Poong position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Young Poong vs. Samyung Trading Co | Young Poong vs. Korea Investment Holdings | Young Poong vs. Woori Technology Investment | Young Poong vs. Worldex Industry Trading |
| Samyung Trading vs. iNtRON Biotechnology | Samyung Trading vs. Seoul Semiconductor Co | Samyung Trading vs. Sangsangin Investment Securities | Samyung Trading vs. Daelim 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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