Correlation Between Youngsin Metal and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Samick Musical 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 Youngsin Metal and Samick Musical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngsin Metal Industrial and Samick Musical Instruments, you can compare the effects of market volatilities on Youngsin Metal and Samick Musical 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 Youngsin Metal with a short position of Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Samick Musical.
Diversification Opportunities for Youngsin Metal and Samick Musical
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youngsin and Samick is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Samick Musical Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samick Musical Instr and Youngsin Metal 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 Youngsin Metal Industrial are associated (or correlated) with Samick Musical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samick Musical Instr has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Samick Musical go up and down completely randomly.
Pair Corralation between Youngsin Metal and Samick Musical
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to generate 2.62 times more return on investment than Samick Musical. However, Youngsin Metal is 2.62 times more volatile than Samick Musical Instruments. It trades about 0.06 of its potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.13 per unit of risk. If you would invest 218,500 in Youngsin Metal Industrial on October 16, 2024 and sell it today you would earn a total of 7,500 from holding Youngsin Metal Industrial or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Samick Musical Instruments
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Samick Musical Instr |
Youngsin Metal and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Samick Musical
The main advantage of trading using opposite Youngsin Metal and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Samick Musical 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 Samick Musical will offset losses from the drop in Samick Musical's long position.| Youngsin Metal vs. SeAH Besteel Corp | Youngsin Metal vs. Shinil Electronics Co | Youngsin Metal vs. Korea Electronic Certification | Youngsin Metal vs. INSUN Environmental New |
| Samick Musical vs. Jb Financial | Samick Musical vs. KTB Investment Securities | Samick Musical vs. LB Investment | Samick Musical vs. SBI Investment KOREA |
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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