Correlation Between Songwon Industrial and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Songwon Industrial 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 Songwon Industrial and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Songwon Industrial Co and Yujin Robot Co, you can compare the effects of market volatilities on Songwon Industrial 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 Songwon Industrial with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songwon Industrial and Yujin Robot.
Diversification Opportunities for Songwon Industrial and Yujin Robot
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Songwon and Yujin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Songwon Industrial Co and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Songwon Industrial 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 Songwon Industrial Co 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 Songwon Industrial i.e., Songwon Industrial and Yujin Robot go up and down completely randomly.
Pair Corralation between Songwon Industrial and Yujin Robot
Assuming the 90 days trading horizon Songwon Industrial is expected to generate 4.99 times less return on investment than Yujin Robot. But when comparing it to its historical volatility, Songwon Industrial Co is 2.07 times less risky than Yujin Robot. It trades about 0.01 of its potential returns per unit of risk. Yujin Robot Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 598,000 in Yujin Robot Co on September 14, 2024 and sell it today you would earn a total of 3,000 from holding Yujin Robot Co or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songwon Industrial Co vs. Yujin Robot Co
Performance |
| Timeline |
| Songwon Industrial |
| Yujin Robot |
Songwon Industrial and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songwon Industrial and Yujin Robot
The main advantage of trading using opposite Songwon Industrial and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songwon Industrial 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.| Songwon Industrial vs. Samsung Electronics Co | Songwon Industrial vs. Samsung Electronics Co | Songwon Industrial vs. SK Hynix | Songwon Industrial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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