Correlation Between Youngsin Metal and Foodnamoo
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Foodnamoo 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 Foodnamoo 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 Foodnamoo, you can compare the effects of market volatilities on Youngsin Metal and Foodnamoo 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 Foodnamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Foodnamoo.
Diversification Opportunities for Youngsin Metal and Foodnamoo
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Youngsin and Foodnamoo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Foodnamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodnamoo 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 Foodnamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodnamoo has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Foodnamoo go up and down completely randomly.
Pair Corralation between Youngsin Metal and Foodnamoo
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Foodnamoo. In addition to that, Youngsin Metal is 1.04 times more volatile than Foodnamoo. It trades about -0.12 of its total potential returns per unit of risk. Foodnamoo is currently generating about 0.03 per unit of volatility. If you would invest 255,500 in Foodnamoo on December 1, 2024 and sell it today you would earn a total of 2,000 from holding Foodnamoo or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Foodnamoo
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Foodnamoo |
Youngsin Metal and Foodnamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Foodnamoo
The main advantage of trading using opposite Youngsin Metal and Foodnamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Foodnamoo 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 Foodnamoo will offset losses from the drop in Foodnamoo's long position.| Youngsin Metal vs. PJ Metal Co | Youngsin Metal vs. Sempio Foods Co | Youngsin Metal vs. Haesung Industrial Co | Youngsin Metal vs. Vissem Electronics Co |
| Foodnamoo vs. SV Investment | Foodnamoo vs. Jinro Distillers Co | Foodnamoo vs. DB Financial Investment | Foodnamoo vs. Daol Investment Securities |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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