Correlation Between Youl Chon and Nasmedia
Can any of the company-specific risk be diversified away by investing in both Youl Chon and Nasmedia 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 Nasmedia 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 Nasmedia Co, you can compare the effects of market volatilities on Youl Chon and Nasmedia 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 Nasmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youl Chon and Nasmedia.
Diversification Opportunities for Youl Chon and Nasmedia
Very good diversification
The 3 months correlation between Youl and Nasmedia is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Youl Chon Chemical and Nasmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasmedia 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 Nasmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasmedia has no effect on the direction of Youl Chon i.e., Youl Chon and Nasmedia go up and down completely randomly.
Pair Corralation between Youl Chon and Nasmedia
Assuming the 90 days trading horizon Youl Chon Chemical is expected to generate 1.62 times more return on investment than Nasmedia. However, Youl Chon is 1.62 times more volatile than Nasmedia Co. It trades about 0.0 of its potential returns per unit of risk. Nasmedia Co is currently generating about -0.04 per unit of risk. If you would invest 3,232,733 in Youl Chon Chemical on August 25, 2024 and sell it today you would lose (877,733) from holding Youl Chon Chemical or give up 27.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youl Chon Chemical vs. Nasmedia Co
Performance |
| Timeline |
| Youl Chon Chemical |
| Nasmedia |
Youl Chon and Nasmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youl Chon and Nasmedia
The main advantage of trading using opposite Youl Chon and Nasmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youl Chon position performs unexpectedly, Nasmedia 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 Nasmedia will offset losses from the drop in Nasmedia's long position.| Youl Chon vs. AptaBio Therapeutics | Youl Chon vs. Daewoo SBI SPAC | Youl Chon vs. Dream Security co | Youl Chon vs. Microfriend |
| Nasmedia vs. Shinsegae Information Communication | Nasmedia vs. Korea Information Communications | Nasmedia vs. Wireless Power Amplifier | Nasmedia vs. Pan Entertainment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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