Correlation Between GS Retail and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both GS Retail 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 GS Retail and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and Youngsin Metal Industrial, you can compare the effects of market volatilities on GS Retail 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 GS Retail with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and Youngsin Metal.
Diversification Opportunities for GS Retail and Youngsin Metal
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between 007070 and Youngsin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail 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 GS Retail 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 GS Retail 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 GS Retail i.e., GS Retail and Youngsin Metal go up and down completely randomly.
Pair Corralation between GS Retail and Youngsin Metal
Assuming the 90 days trading horizon GS Retail Co is expected to generate 0.67 times more return on investment than Youngsin Metal. However, GS Retail Co is 1.49 times less risky than Youngsin Metal. It trades about 0.26 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.31 per unit of risk. If you would invest 2,075,000 in GS Retail Co on August 28, 2024 and sell it today you would earn a total of 235,000 from holding GS Retail Co or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Retail Co vs. Youngsin Metal Industrial
Performance |
| Timeline |
| GS Retail |
| Youngsin Metal Industrial |
GS Retail and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and Youngsin Metal
The main advantage of trading using opposite GS Retail and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail 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.| GS Retail vs. AptaBio Therapeutics | GS Retail vs. Daewoo SBI SPAC | GS Retail vs. Dream Security co | GS Retail vs. Microfriend |
| Youngsin Metal vs. Kbi Metal Co | Youngsin Metal vs. Shinhan Inverse Silver | Youngsin Metal vs. Busan Industrial Co | Youngsin Metal vs. Aprogen Healthcare Games |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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