Correlation Between Moonbae Steel and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Moonbae Steel and Youngsin Metal 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 Moonbae Steel and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moonbae Steel and Youngsin Metal Industrial, you can compare the effects of market volatilities on Moonbae Steel and Youngsin Metal 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 Moonbae Steel with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moonbae Steel and Youngsin Metal.
Diversification Opportunities for Moonbae Steel and Youngsin Metal
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Moonbae and Youngsin is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Moonbae Steel and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial and Moonbae Steel 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 Moonbae Steel are associated (or correlated) with Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Moonbae Steel i.e., Moonbae Steel and Youngsin Metal go up and down completely randomly.
Pair Corralation between Moonbae Steel and Youngsin Metal
Assuming the 90 days trading horizon Moonbae Steel is expected to under-perform the Youngsin Metal. But the stock apears to be less risky and, when comparing its historical volatility, Moonbae Steel is 2.91 times less risky than Youngsin Metal. The stock trades about -0.04 of its potential returns per unit of risk. The Youngsin Metal Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 218,500 in Youngsin Metal Industrial on October 17, 2024 and sell it today you would earn a total of 8,000 from holding Youngsin Metal Industrial or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moonbae Steel vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Moonbae Steel |
| Youngsin Metal Industrial |
Moonbae Steel and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moonbae Steel and Youngsin Metal
The main advantage of trading using opposite Moonbae Steel and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moonbae Steel position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Moonbae Steel vs. Jeju Air Co | Moonbae Steel vs. TOPMATERIAL LTD | Moonbae Steel vs. LAKE MATERIALS LTD | Moonbae Steel vs. Ecoplastic |
| Youngsin Metal vs. Woori Financial Group | Youngsin Metal vs. Moonbae Steel | Youngsin Metal vs. Hana Financial | Youngsin Metal vs. KakaoBank Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |