Correlation Between Youngsin Metal and Eagon Industrial
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Eagon Industrial 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 Eagon Industrial 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 Eagon Industrial Co, you can compare the effects of market volatilities on Youngsin Metal and Eagon Industrial 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 Eagon Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Eagon Industrial.
Diversification Opportunities for Youngsin Metal and Eagon Industrial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youngsin and Eagon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Eagon Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagon Industrial 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 Eagon Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagon Industrial has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Eagon Industrial go up and down completely randomly.
Pair Corralation between Youngsin Metal and Eagon Industrial
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Eagon Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Youngsin Metal Industrial is 5.21 times less risky than Eagon Industrial. The stock trades about -0.26 of its potential returns per unit of risk. The Eagon Industrial Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 515,885 in Eagon Industrial Co on October 20, 2024 and sell it today you would earn a total of 76,115 from holding Eagon Industrial Co or generate 14.75% 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. Eagon Industrial Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Eagon Industrial |
Youngsin Metal and Eagon Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Eagon Industrial
The main advantage of trading using opposite Youngsin Metal and Eagon Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Eagon Industrial 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 Eagon Industrial will offset losses from the drop in Eagon Industrial's long position.| Youngsin Metal vs. Haitai Confectionery Foods | Youngsin Metal vs. Sam Yang Foods | Youngsin Metal vs. CKH Food Health | Youngsin Metal vs. Hyundai Green Food |
| Eagon Industrial vs. Digital Power Communications | Eagon Industrial vs. Jeju Bank | Eagon Industrial vs. Industrial Bank | Eagon Industrial vs. Nice Information Telecommunication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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