Correlation Between Samyoung Electronics and YOUNGHWA TECH
Can any of the company-specific risk be diversified away by investing in both Samyoung Electronics and YOUNGHWA 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 Samyoung Electronics and YOUNGHWA TECH 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 YOUNGHWA TECH Co, you can compare the effects of market volatilities on Samyoung Electronics and YOUNGHWA 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 Samyoung Electronics with a short position of YOUNGHWA TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and YOUNGHWA TECH.
Diversification Opportunities for Samyoung Electronics and YOUNGHWA TECH
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samyoung and YOUNGHWA is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung Electronics Co and YOUNGHWA TECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YOUNGHWA TECH 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 YOUNGHWA TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YOUNGHWA TECH has no effect on the direction of Samyoung Electronics i.e., Samyoung Electronics and YOUNGHWA TECH go up and down completely randomly.
Pair Corralation between Samyoung Electronics and YOUNGHWA TECH
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.74 times more return on investment than YOUNGHWA TECH. However, Samyoung Electronics Co is 1.36 times less risky than YOUNGHWA TECH. It trades about 0.02 of its potential returns per unit of risk. YOUNGHWA TECH Co is currently generating about -0.02 per unit of risk. If you would invest 881,676 in Samyoung Electronics Co on September 3, 2024 and sell it today you would earn a total of 124,324 from holding Samyoung Electronics Co or generate 14.1% 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. YOUNGHWA TECH Co
Performance |
| Timeline |
| Samyoung Electronics |
| YOUNGHWA TECH |
Samyoung Electronics and YOUNGHWA TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and YOUNGHWA TECH
The main advantage of trading using opposite Samyoung Electronics and YOUNGHWA TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung Electronics position performs unexpectedly, YOUNGHWA 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 YOUNGHWA TECH will offset losses from the drop in YOUNGHWA TECH's long position.| Samyoung Electronics vs. AptaBio Therapeutics | Samyoung Electronics vs. Daewoo SBI SPAC | Samyoung Electronics vs. Dream Security co | Samyoung Electronics vs. Microfriend |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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