Correlation Between Youngsin Metal and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Youngsin Metal and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Duksan Hi.
Diversification Opportunities for Youngsin Metal and Duksan Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youngsin and Duksan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Duksan Hi go up and down completely randomly.
Pair Corralation between Youngsin Metal and Duksan Hi
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Youngsin Metal Industrial is 1.47 times less risky than Duksan Hi. The stock trades about -0.01 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 499,000 in Duksan Hi Metal on September 3, 2024 and sell it today you would lose (125,000) from holding Duksan Hi Metal or give up 25.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Duksan Hi Metal
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Duksan Hi Metal |
Youngsin Metal and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Duksan Hi
The main advantage of trading using opposite Youngsin Metal and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Youngsin Metal vs. LG Display | Youngsin Metal vs. Hyundai Motor | Youngsin Metal vs. Hyundai Motor Co | Youngsin Metal vs. Hyundai Motor Co |
| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi vs. Total Soft Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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