Correlation Between Youngsin Metal and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Ssangyong Information 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 Ssangyong Information 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 Ssangyong Information Communication, you can compare the effects of market volatilities on Youngsin Metal and Ssangyong Information 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 Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Ssangyong Information.
Diversification Opportunities for Youngsin Metal and Ssangyong Information
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youngsin and Ssangyong is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information 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 Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Ssangyong Information go up and down completely randomly.
Pair Corralation between Youngsin Metal and Ssangyong Information
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Ssangyong Information. In addition to that, Youngsin Metal is 1.13 times more volatile than Ssangyong Information Communication. It trades about -0.08 of its total potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.06 per unit of volatility. If you would invest 90,600 in Ssangyong Information Communication on September 1, 2024 and sell it today you would lose (28,600) from holding Ssangyong Information Communication or give up 31.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Ssangyong Information Communic
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Ssangyong Information |
Youngsin Metal and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Ssangyong Information
The main advantage of trading using opposite Youngsin Metal and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Youngsin Metal vs. Korea New Network | Youngsin Metal vs. ICD Co | Youngsin Metal vs. DYPNF CoLtd | Youngsin Metal vs. Busan Industrial Co |
| Ssangyong Information vs. Settlebank | Ssangyong Information vs. Daishin Information Communications | Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. Busan Ind |
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 CEOs Directory module to screen CEOs from public companies around the world.
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