Correlation Between Youngsin Metal and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Shinsegae 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 Shinsegae 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 Shinsegae Information Communication, you can compare the effects of market volatilities on Youngsin Metal and Shinsegae 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Shinsegae Information.
Diversification Opportunities for Youngsin Metal and Shinsegae Information
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youngsin and Shinsegae is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Shinsegae Information go up and down completely randomly.
Pair Corralation between Youngsin Metal and Shinsegae Information
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Shinsegae Information. In addition to that, Youngsin Metal is 1.09 times more volatile than Shinsegae Information Communication. It trades about -0.07 of its total potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.07 per unit of volatility. If you would invest 1,382,895 in Shinsegae Information Communication on August 31, 2024 and sell it today you would lose (493,895) from holding Shinsegae Information Communication or give up 35.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Shinsegae Information Communic
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Shinsegae Information |
Youngsin Metal and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Shinsegae Information
The main advantage of trading using opposite Youngsin Metal and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Shinsegae 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 Shinsegae Information will offset losses from the drop in Shinsegae 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 |
| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |