Correlation Between Youngsin Metal and Sinil Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Sinil Pharmaceutical 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 Sinil Pharmaceutical 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 Sinil Pharmaceutical Co, you can compare the effects of market volatilities on Youngsin Metal and Sinil Pharmaceutical 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 Sinil Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Sinil Pharmaceutical.
Diversification Opportunities for Youngsin Metal and Sinil Pharmaceutical
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youngsin and Sinil is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Sinil Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinil Pharmaceutical 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 Sinil Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinil Pharmaceutical has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Sinil Pharmaceutical go up and down completely randomly.
Pair Corralation between Youngsin Metal and Sinil Pharmaceutical
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Sinil Pharmaceutical. In addition to that, Youngsin Metal is 1.0 times more volatile than Sinil Pharmaceutical Co. It trades about -0.08 of its total potential returns per unit of risk. Sinil Pharmaceutical Co is currently generating about -0.02 per unit of volatility. If you would invest 790,853 in Sinil Pharmaceutical Co on September 1, 2024 and sell it today you would lose (136,853) from holding Sinil Pharmaceutical Co or give up 17.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Sinil Pharmaceutical Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Sinil Pharmaceutical |
Youngsin Metal and Sinil Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Sinil Pharmaceutical
The main advantage of trading using opposite Youngsin Metal and Sinil Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Sinil Pharmaceutical 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 Sinil Pharmaceutical will offset losses from the drop in Sinil Pharmaceutical'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 |
| Sinil Pharmaceutical vs. Digital Power Communications | Sinil Pharmaceutical vs. Hanjoo Light Metal | Sinil Pharmaceutical vs. Shinsegae Information Communication | Sinil Pharmaceutical vs. Korea Air Svc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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