Correlation Between Samyung Trading and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Samyung Trading and Yura Tech 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 Yura Tech 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 Yura Tech Co, you can compare the effects of market volatilities on Samyung Trading and Yura Tech 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 Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyung Trading and Yura Tech.
Diversification Opportunities for Samyung Trading and Yura Tech
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samyung and Yura is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samyung Trading Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech 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 Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Samyung Trading i.e., Samyung Trading and Yura Tech go up and down completely randomly.
Pair Corralation between Samyung Trading and Yura Tech
Assuming the 90 days trading horizon Samyung Trading Co is expected to under-perform the Yura Tech. But the stock apears to be less risky and, when comparing its historical volatility, Samyung Trading Co is 3.35 times less risky than Yura Tech. The stock trades about -0.22 of its potential returns per unit of risk. The Yura Tech Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 794,000 in Yura Tech Co on November 2, 2024 and sell it today you would earn a total of 36,000 from holding Yura Tech Co or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyung Trading Co vs. Yura Tech Co
Performance |
| Timeline |
| Samyung Trading |
| Yura Tech |
Samyung Trading and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyung Trading and Yura Tech
The main advantage of trading using opposite Samyung Trading and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyung Trading position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Samyung Trading vs. Cuckoo Electronics Co | Samyung Trading vs. SungMoon Electronics Co | Samyung Trading vs. Shinil Electronics Co | Samyung Trading vs. ABCO Electronics Co |
| Yura Tech vs. Samsung Electronics Co | Yura Tech vs. Samsung Electronics Co | Yura Tech vs. KB Financial Group | Yura Tech vs. Shinhan Financial Group |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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