Correlation Between Youngsin Metal and Sungwoo Electronics
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Sungwoo Electronics 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 Sungwoo Electronics 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 Sungwoo Electronics Co, you can compare the effects of market volatilities on Youngsin Metal and Sungwoo Electronics 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 Sungwoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Sungwoo Electronics.
Diversification Opportunities for Youngsin Metal and Sungwoo Electronics
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Youngsin and Sungwoo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Sungwoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo Electronics 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 Sungwoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Electronics has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Sungwoo Electronics go up and down completely randomly.
Pair Corralation between Youngsin Metal and Sungwoo Electronics
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to generate 1.06 times more return on investment than Sungwoo Electronics. However, Youngsin Metal is 1.06 times more volatile than Sungwoo Electronics Co. It trades about -0.32 of its potential returns per unit of risk. Sungwoo Electronics Co is currently generating about -0.34 per unit of risk. If you would invest 271,000 in Youngsin Metal Industrial on September 5, 2024 and sell it today you would lose (52,000) from holding Youngsin Metal Industrial or give up 19.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Sungwoo Electronics Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Sungwoo Electronics |
Youngsin Metal and Sungwoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Sungwoo Electronics
The main advantage of trading using opposite Youngsin Metal and Sungwoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Sungwoo Electronics 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 Sungwoo Electronics will offset losses from the drop in Sungwoo Electronics' long position.| Youngsin Metal vs. Asiana Airlines | Youngsin Metal vs. SKONEC Entertainment Co | Youngsin Metal vs. ChipsMedia | Youngsin Metal vs. Alton Sports CoLtd |
| Sungwoo Electronics vs. Seoam Machinery Industry | Sungwoo Electronics vs. Hanjoo Light Metal | Sungwoo Electronics vs. Daiyang Metal Co | Sungwoo Electronics vs. Youngsin Metal Industrial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |