Correlation Between FOODWELL and Young Poong
Can any of the company-specific risk be diversified away by investing in both FOODWELL 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 FOODWELL and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOODWELL Co and Young Poong Corp, you can compare the effects of market volatilities on FOODWELL 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 FOODWELL with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOODWELL and Young Poong.
Diversification Opportunities for FOODWELL and Young Poong
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FOODWELL and Young is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding FOODWELL 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 FOODWELL 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 FOODWELL 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 FOODWELL i.e., FOODWELL and Young Poong go up and down completely randomly.
Pair Corralation between FOODWELL and Young Poong
Assuming the 90 days trading horizon FOODWELL Co is expected to generate 0.49 times more return on investment than Young Poong. However, FOODWELL Co is 2.04 times less risky than Young Poong. It trades about 0.0 of its potential returns per unit of risk. Young Poong Corp is currently generating about 0.0 per unit of risk. If you would invest 572,864 in FOODWELL Co on October 31, 2024 and sell it today you would lose (48,864) from holding FOODWELL Co or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOODWELL Co vs. Young Poong Corp
Performance |
| Timeline |
| FOODWELL |
| Young Poong Corp |
FOODWELL and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOODWELL and Young Poong
The main advantage of trading using opposite FOODWELL and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOODWELL 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.| FOODWELL vs. LB Investment | FOODWELL vs. TS Investment Corp | FOODWELL vs. Coloray International Investment | FOODWELL vs. Mirai Semiconductors Co |
| Young Poong vs. SungMoon Electronics Co | Young Poong vs. PJ Electronics Co | Young Poong vs. Korea Electronic Certification | Young Poong vs. Samlip General Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |