Correlation Between Youngsin Metal and Prestige Biologics
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal and Prestige Biologics 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 Prestige Biologics 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 Prestige Biologics Co, you can compare the effects of market volatilities on Youngsin Metal and Prestige Biologics 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 Prestige Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Prestige Biologics.
Diversification Opportunities for Youngsin Metal and Prestige Biologics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youngsin and Prestige is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Prestige Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prestige Biologics 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 Prestige Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prestige Biologics has no effect on the direction of Youngsin Metal i.e., Youngsin Metal and Prestige Biologics go up and down completely randomly.
Pair Corralation between Youngsin Metal and Prestige Biologics
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to under-perform the Prestige Biologics. But the stock apears to be less risky and, when comparing its historical volatility, Youngsin Metal Industrial is 2.01 times less risky than Prestige Biologics. The stock trades about -0.05 of its potential returns per unit of risk. The Prestige Biologics Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 468,000 in Prestige Biologics Co on September 5, 2024 and sell it today you would earn a total of 81,000 from holding Prestige Biologics Co or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Prestige Biologics Co
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Prestige Biologics |
Youngsin Metal and Prestige Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Prestige Biologics
The main advantage of trading using opposite Youngsin Metal and Prestige Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal position performs unexpectedly, Prestige Biologics 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 Prestige Biologics will offset losses from the drop in Prestige Biologics' long position.| Youngsin Metal vs. Asiana Airlines | Youngsin Metal vs. SKONEC Entertainment Co | Youngsin Metal vs. ChipsMedia | Youngsin Metal vs. Alton Sports CoLtd |
| Prestige Biologics vs. Myoung Shin Industrial | Prestige Biologics vs. Namhwa Industrial Co | Prestige Biologics vs. Daiyang Metal Co | Prestige Biologics vs. Lotte Non Life Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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