Correlation Between SeAH Besteel and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both SeAH Besteel and Youngsin Metal 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 SeAH Besteel and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Besteel Corp and Youngsin Metal Industrial, you can compare the effects of market volatilities on SeAH Besteel and Youngsin Metal 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 SeAH Besteel with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Besteel and Youngsin Metal.
Diversification Opportunities for SeAH Besteel and Youngsin Metal
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SeAH and Youngsin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Besteel Corp and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial and SeAH Besteel 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 SeAH Besteel Corp are associated (or correlated) with Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of SeAH Besteel i.e., SeAH Besteel and Youngsin Metal go up and down completely randomly.
Pair Corralation between SeAH Besteel and Youngsin Metal
Assuming the 90 days trading horizon SeAH Besteel Corp is expected to generate 1.33 times more return on investment than Youngsin Metal. However, SeAH Besteel is 1.33 times more volatile than Youngsin Metal Industrial. It trades about 0.02 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.02 per unit of risk. If you would invest 1,751,558 in SeAH Besteel Corp on October 16, 2024 and sell it today you would earn a total of 137,442 from holding SeAH Besteel Corp or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Besteel Corp vs. Youngsin Metal Industrial
Performance |
| Timeline |
| SeAH Besteel Corp |
| Youngsin Metal Industrial |
SeAH Besteel and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Besteel and Youngsin Metal
The main advantage of trading using opposite SeAH Besteel and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Besteel position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| SeAH Besteel vs. Sungchang Autotech Co | SeAH Besteel vs. Narae Nanotech Corp | SeAH Besteel vs. PH Tech Co | SeAH Besteel vs. N2Tech Co |
| Youngsin Metal vs. SeAH Besteel Corp | Youngsin Metal vs. Shinil Electronics Co | Youngsin Metal vs. Korea Electronic Certification | Youngsin Metal vs. INSUN Environmental New |
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.
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