Correlation Between Youngsin Metal and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Youngsin Metal and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and BIT Computer.
Diversification Opportunities for Youngsin Metal and BIT Computer
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youngsin and BIT is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and BIT Computer go up and down completely randomly.
Pair Corralation between Youngsin Metal and BIT Computer
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the BIT Computer. In addition to that, Youngsin Metal is 1.35 times more volatile than BIT Computer Co. It trades about -0.14 of its total potential returns per unit of risk. BIT Computer Co is currently generating about 0.15 per unit of volatility. If you would invest 459,500 in BIT Computer Co on September 15, 2024 and sell it today you would earn a total of 41,500 from holding BIT Computer Co or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. BIT Computer Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| BIT Computer |
Youngsin Metal and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and BIT Computer
The main advantage of trading using opposite Youngsin Metal and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Youngsin Metal vs. Sam Yang Foods | Youngsin Metal vs. Jeju Beer Co | Youngsin Metal vs. Daejung Chemicals Metals | Youngsin Metal vs. Daiyang Metal Co |
| BIT Computer vs. Handok Clean Tech | BIT Computer vs. Youngsin Metal Industrial | BIT Computer vs. Dongil Metal Co | BIT Computer vs. Samsung Life Insurance |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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