Correlation Between Youl Chon and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Youl Chon and Iljin Display 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 Youl Chon and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youl Chon Chemical and Iljin Display, you can compare the effects of market volatilities on Youl Chon and Iljin Display 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 Youl Chon with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youl Chon and Iljin Display.
Diversification Opportunities for Youl Chon and Iljin Display
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youl and Iljin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Youl Chon Chemical and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Youl Chon 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 Youl Chon Chemical are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Youl Chon i.e., Youl Chon and Iljin Display go up and down completely randomly.
Pair Corralation between Youl Chon and Iljin Display
Assuming the 90 days trading horizon Youl Chon Chemical is expected to generate 2.16 times more return on investment than Iljin Display. However, Youl Chon is 2.16 times more volatile than Iljin Display. It trades about 0.02 of its potential returns per unit of risk. Iljin Display is currently generating about -0.08 per unit of risk. If you would invest 2,855,000 in Youl Chon Chemical on January 19, 2025 and sell it today you would earn a total of 5,000 from holding Youl Chon Chemical or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youl Chon Chemical vs. Iljin Display
Performance |
| Timeline |
| Youl Chon Chemical |
| Iljin Display |
Youl Chon and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youl Chon and Iljin Display
The main advantage of trading using opposite Youl Chon and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youl Chon position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Youl Chon vs. AptaBio Therapeutics | Youl Chon vs. Daewoo SBI SPAC | Youl Chon vs. Dream Security co | Youl Chon vs. Microfriend |
| Iljin Display vs. SK IE Technology | Iljin Display vs. Solus Advanced Materials | Iljin Display vs. DAEDUCK ELECTRONICS CoLtd | Iljin Display vs. Sungmoon 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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