Correlation Between Youngsin Metal and Pum Tech
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Pum Tech 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 Pum Tech 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 Pum Tech Korea Co, you can compare the effects of market volatilities on Youngsin Metal and Pum Tech 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 Pum Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Pum Tech.
Diversification Opportunities for Youngsin Metal and Pum Tech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Youngsin and Pum is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Pum Tech Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pum Tech Korea 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 Pum Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pum Tech Korea has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Pum Tech go up and down completely randomly.
Pair Corralation between Youngsin Metal and Pum Tech
Assuming the 90 days trading horizon Youngsin Metal is expected to generate 6.4 times less return on investment than Pum Tech. In addition to that, Youngsin Metal is 1.56 times more volatile than Pum Tech Korea Co. It trades about 0.03 of its total potential returns per unit of risk. Pum Tech Korea Co is currently generating about 0.3 per unit of volatility. If you would invest 4,150,000 in Pum Tech Korea Co on October 15, 2024 and sell it today you would earn a total of 600,000 from holding Pum Tech Korea Co or generate 14.46% 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. Pum Tech Korea Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Pum Tech Korea |
Youngsin Metal and Pum Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Pum Tech
The main advantage of trading using opposite Youngsin Metal and Pum Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Pum Tech 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 Pum Tech will offset losses from the drop in Pum Tech's long position.| Youngsin Metal vs. SeAH Besteel Corp | Youngsin Metal vs. Shinil Electronics Co | Youngsin Metal vs. Korea Electronic Certification | Youngsin Metal vs. INSUN Environmental New |
| Pum Tech vs. Kbi Metal Co | Pum Tech vs. Ssangyong Information Communication | Pum Tech vs. Youngsin Metal Industrial | Pum Tech vs. Daiyang Metal Co |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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