Correlation Between Youl Chon and Samsung Biologics
Can any of the company-specific risk be diversified away by investing in both Youl Chon and Samsung 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 Youl Chon and Samsung Biologics 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 Samsung Biologics Co, you can compare the effects of market volatilities on Youl Chon and Samsung 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 Youl Chon with a short position of Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youl Chon and Samsung Biologics.
Diversification Opportunities for Youl Chon and Samsung Biologics
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Youl and Samsung is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Youl Chon Chemical and Samsung Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Biologics 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 Samsung Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Biologics has no effect on the direction of Youl Chon i.e., Youl Chon and Samsung Biologics go up and down completely randomly.
Pair Corralation between Youl Chon and Samsung Biologics
Assuming the 90 days trading horizon Youl Chon Chemical is expected to under-perform the Samsung Biologics. In addition to that, Youl Chon is 2.52 times more volatile than Samsung Biologics Co. It trades about 0.0 of its total potential returns per unit of risk. Samsung Biologics Co is currently generating about 0.04 per unit of volatility. If you would invest 77,700,000 in Samsung Biologics Co on November 27, 2024 and sell it today you would earn a total of 22,300,000 from holding Samsung Biologics Co or generate 28.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youl Chon Chemical vs. Samsung Biologics Co
Performance |
| Timeline |
| Youl Chon Chemical |
| Samsung Biologics |
Youl Chon and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youl Chon and Samsung Biologics
The main advantage of trading using opposite Youl Chon and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youl Chon position performs unexpectedly, Samsung 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 Samsung Biologics will offset losses from the drop in Samsung Biologics' long position.| Youl Chon vs. Ecoplastic | Youl Chon vs. T3 Entertainment Co | Youl Chon vs. Cube Entertainment | Youl Chon vs. Daewon Media Co |
| Samsung Biologics vs. Korea Air Svc | Samsung Biologics vs. KPX Green Chemical | Samsung Biologics vs. Chorokbaem Healthcare Co | Samsung Biologics vs. Infinitt Healthcare 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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