Correlation Between Anam Electronics and Youl Chon
Can any of the company-specific risk be diversified away by investing in both Anam Electronics and Youl Chon 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 Anam Electronics and Youl Chon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anam Electronics Co and Youl Chon Chemical, you can compare the effects of market volatilities on Anam Electronics and Youl Chon 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 Anam Electronics with a short position of Youl Chon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anam Electronics and Youl Chon.
Diversification Opportunities for Anam Electronics and Youl Chon
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anam and Youl is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Anam Electronics Co and Youl Chon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youl Chon Chemical and Anam Electronics 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 Anam Electronics Co are associated (or correlated) with Youl Chon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youl Chon Chemical has no effect on the direction of Anam Electronics i.e., Anam Electronics and Youl Chon go up and down completely randomly.
Pair Corralation between Anam Electronics and Youl Chon
Assuming the 90 days trading horizon Anam Electronics Co is expected to under-perform the Youl Chon. But the stock apears to be less risky and, when comparing its historical volatility, Anam Electronics Co is 1.61 times less risky than Youl Chon. The stock trades about -0.05 of its potential returns per unit of risk. The Youl Chon Chemical is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,888,479 in Youl Chon Chemical on November 1, 2024 and sell it today you would lose (1,628,479) from holding Youl Chon Chemical or give up 33.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anam Electronics Co vs. Youl Chon Chemical
Performance |
| Timeline |
| Anam Electronics |
| Youl Chon Chemical |
Anam Electronics and Youl Chon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anam Electronics and Youl Chon
The main advantage of trading using opposite Anam Electronics and Youl Chon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anam Electronics position performs unexpectedly, Youl Chon 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 Youl Chon will offset losses from the drop in Youl Chon's long position.| Anam Electronics vs. SCI Information Service | Anam Electronics vs. Shinhan Inverse Silver | Anam Electronics vs. Hotel Shilla Co | Anam Electronics vs. Dongwoo Farm To |
| Youl Chon vs. Anam Electronics Co | Youl Chon vs. Daejung Chemicals Metals | Youl Chon vs. PJ Electronics Co | Youl Chon vs. ABCO Electronics 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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