Correlation Between Samyoung Electronics and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics 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 Samyoung Electronics and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samyoung Electronics Co and Youngsin Metal Industrial, you can compare the effects of market volatilities on Samyoung Electronics 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 Samyoung Electronics with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Youngsin Metal.
Diversification Opportunities for Samyoung Electronics and Youngsin Metal
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyoung and Youngsin is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co 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 Samyoung Electronics 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 Samyoung Electronics Co 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 Samyoung Electronics i.e., Samyoung Electronics and Youngsin Metal go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Youngsin Metal
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.66 times more return on investment than Youngsin Metal. However, Samyoung Electronics Co is 1.5 times less risky than Youngsin Metal. It trades about 0.02 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.01 per unit of risk. If you would invest 880,020 in Samyoung Electronics Co on October 13, 2024 and sell it today you would earn a total of 96,980 from holding Samyoung Electronics Co or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Samyoung Electronics |
| Youngsin Metal Industrial |
Samyoung Electronics and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Youngsin Metal
The main advantage of trading using opposite Samyoung Electronics and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics 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.| Samyoung Electronics vs. Hana Financial | Samyoung Electronics vs. Mobile Appliance | Samyoung Electronics vs. Industrial Bank | Samyoung Electronics vs. Lotte Non Life Insurance |
| Youngsin Metal vs. Samyoung Electronics Co | Youngsin Metal vs. SEOJEON ELECTRIC MACHINERY | Youngsin Metal vs. Seoam Machinery Industry | Youngsin Metal vs. Samwha Electronics Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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