Correlation Between Samyung Trading and Young Poong
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Young Poong 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 Samyung Trading and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyung Trading Co and Young Poong Corp, you can compare the effects of market volatilities on Samyung Trading and Young Poong 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 Samyung Trading with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Young Poong.
Diversification Opportunities for Samyung Trading and Young Poong
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samyung and Young is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and Samyung Trading 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 Samyung Trading Co are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Corp has no effect on the direction of Samyung Trading i.e., Samyung Trading and Young Poong go up and down completely randomly.
Pair Corralation between Samyung Trading and Young Poong
Assuming the 90 days trading horizon Samyung Trading Co is expected to under-perform the Young Poong. But the stock apears to be less risky and, when comparing its historical volatility, Samyung Trading Co is 1.38 times less risky than Young Poong. The stock trades about -0.19 of its potential returns per unit of risk. The Young Poong Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 38,340,600 in Young Poong Corp on October 15, 2024 and sell it today you would earn a total of 1,359,400 from holding Young Poong Corp or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. Young Poong Corp
Performance |
| Timeline |
| Samyung Trading |
| Young Poong Corp |
Samyung Trading and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Young Poong
The main advantage of trading using opposite Samyung Trading and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Samyung Trading vs. iNtRON Biotechnology | Samyung Trading vs. Seoul Semiconductor Co | Samyung Trading vs. Sangsangin Investment Securities | Samyung Trading vs. Daelim Trading Co |
| Young Poong vs. Samyung Trading Co | Young Poong vs. Korea Investment Holdings | Young Poong vs. Woori Technology Investment | Young Poong vs. Worldex Industry Trading |
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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