Correlation Between Youngsin Metal and Jeju Air
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Jeju Air 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 Jeju Air 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 Jeju Air Co, you can compare the effects of market volatilities on Youngsin Metal and Jeju Air 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 Jeju Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Jeju Air.
Diversification Opportunities for Youngsin Metal and Jeju Air
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Youngsin and Jeju is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Jeju Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Air 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 Jeju Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Air has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Jeju Air go up and down completely randomly.
Pair Corralation between Youngsin Metal and Jeju Air
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Jeju Air. But the stock apears to be less risky and, when comparing its historical volatility, Youngsin Metal Industrial is 1.07 times less risky than Jeju Air. The stock trades about -0.6 of its potential returns per unit of risk. The Jeju Air Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 894,000 in Jeju Air Co on August 27, 2024 and sell it today you would earn a total of 36,000 from holding Jeju Air Co or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Jeju Air Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Jeju Air |
Youngsin Metal and Jeju Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Jeju Air
The main advantage of trading using opposite Youngsin Metal and Jeju Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Jeju Air 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 Jeju Air will offset losses from the drop in Jeju Air's long position.| Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. Samsung Electronics Co | Youngsin Metal vs. Hyundai Motor Co | Youngsin Metal vs. Hyundai Motor |
| Jeju Air vs. Samsung Electronics Co | Jeju Air vs. Samsung Electronics Co | Jeju Air vs. Hyundai Motor Co | Jeju Air vs. Hyundai Motor |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |