Correlation Between Youngsin Metal and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Youngsin Metal and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Daewoo SBI.
Diversification Opportunities for Youngsin Metal and Daewoo SBI
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Youngsin and Daewoo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Daewoo SBI go up and down completely randomly.
Pair Corralation between Youngsin Metal and Daewoo SBI
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to generate 1.22 times more return on investment than Daewoo SBI. However, Youngsin Metal is 1.22 times more volatile than Daewoo SBI SPAC. It trades about 0.03 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.1 per unit of risk. If you would invest 218,000 in Youngsin Metal Industrial on October 14, 2024 and sell it today you would earn a total of 2,500 from holding Youngsin Metal Industrial or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Daewoo SBI SPAC |
Youngsin Metal and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Daewoo SBI
The main advantage of trading using opposite Youngsin Metal and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Youngsin Metal vs. Solution Advanced Technology | Youngsin Metal vs. LG Chemicals | Youngsin Metal vs. Nh Investment And | Youngsin Metal vs. Coloray International Investment |
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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 Stocks Directory module to find actively traded stocks across global markets.
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