Correlation Between Youngsin Metal and Sam A
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Sam A 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 Sam A 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 Sam A Pharm Co, you can compare the effects of market volatilities on Youngsin Metal and Sam A 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 Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Sam A.
Diversification Opportunities for Youngsin Metal and Sam A
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Youngsin and Sam is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm 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 Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Sam A go up and down completely randomly.
Pair Corralation between Youngsin Metal and Sam A
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Sam A. But the stock apears to be less risky and, when comparing its historical volatility, Youngsin Metal Industrial is 2.4 times less risky than Sam A. The stock trades about -0.11 of its potential returns per unit of risk. The Sam A Pharm Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,965,000 in Sam A Pharm Co on September 4, 2024 and sell it today you would lose (243,000) from holding Sam A Pharm Co or give up 12.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Sam A Pharm Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Sam A Pharm |
Youngsin Metal and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Sam A
The main advantage of trading using opposite Youngsin Metal and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| Youngsin Metal vs. LG Display | Youngsin Metal vs. Hyundai Motor | Youngsin Metal vs. Hyundai Motor Co | Youngsin Metal vs. Hyundai Motor Co |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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