Correlation Between Youngsin Metal and Oriental Precision
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Oriental Precision 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 Oriental Precision 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 Oriental Precision Engineering, you can compare the effects of market volatilities on Youngsin Metal and Oriental Precision 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 Oriental Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Oriental Precision.
Diversification Opportunities for Youngsin Metal and Oriental Precision
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Youngsin and Oriental is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Oriental Precision Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Precision 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 Oriental Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Precision has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Oriental Precision go up and down completely randomly.
Pair Corralation between Youngsin Metal and Oriental Precision
Assuming the 90 days trading horizon Youngsin Metal is expected to generate 2.7 times less return on investment than Oriental Precision. In addition to that, Youngsin Metal is 1.25 times more volatile than Oriental Precision Engineering. It trades about 0.06 of its total potential returns per unit of risk. Oriental Precision Engineering is currently generating about 0.21 per unit of volatility. If you would invest 482,037 in Oriental Precision Engineering on October 16, 2024 and sell it today you would earn a total of 56,963 from holding Oriental Precision Engineering or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Oriental Precision Engineering
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Oriental Precision |
Youngsin Metal and Oriental Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Oriental Precision
The main advantage of trading using opposite Youngsin Metal and Oriental Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Oriental Precision 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 Oriental Precision will offset losses from the drop in Oriental Precision's long position.| Youngsin Metal vs. Kisan Telecom Co | Youngsin Metal vs. V One Tech Co | Youngsin Metal vs. CU Tech Corp | Youngsin Metal vs. SS TECH |
| Oriental Precision vs. Youngsin Metal Industrial | Oriental Precision vs. Seoyon Topmetal Co | Oriental Precision vs. Kyung In Synthetic Corp | Oriental Precision vs. KPX Green Chemical |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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