Correlation Between Daiyang Metal and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Daiyang Metal and Yujin Robot 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 Daiyang Metal and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daiyang Metal Co and Yujin Robot Co, you can compare the effects of market volatilities on Daiyang Metal and Yujin Robot 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 Daiyang Metal with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daiyang Metal and Yujin Robot.
Diversification Opportunities for Daiyang Metal and Yujin Robot
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daiyang and Yujin is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Daiyang Metal Co and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Daiyang Metal 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 Daiyang Metal Co are associated (or correlated) with Yujin Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yujin Robot has no effect on the direction of Daiyang Metal i.e., Daiyang Metal and Yujin Robot go up and down completely randomly.
Pair Corralation between Daiyang Metal and Yujin Robot
Assuming the 90 days trading horizon Daiyang Metal Co is expected to under-perform the Yujin Robot. But the stock apears to be less risky and, when comparing its historical volatility, Daiyang Metal Co is 2.15 times less risky than Yujin Robot. The stock trades about -0.11 of its potential returns per unit of risk. The Yujin Robot Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 604,000 in Yujin Robot Co on October 25, 2024 and sell it today you would earn a total of 197,000 from holding Yujin Robot Co or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Daiyang Metal Co vs. Yujin Robot Co
Performance |
| Timeline |
| Daiyang Metal |
| Yujin Robot |
Daiyang Metal and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daiyang Metal and Yujin Robot
The main advantage of trading using opposite Daiyang Metal and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daiyang Metal position performs unexpectedly, Yujin Robot 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 Yujin Robot will offset losses from the drop in Yujin Robot's long position.| Daiyang Metal vs. Handok Clean Tech | Daiyang Metal vs. Dong A Steel Technology | Daiyang Metal vs. Daechang Steel Co | Daiyang Metal vs. DataSolution |
| Yujin Robot vs. Hannong Chemicals | Yujin Robot vs. SK Chemicals Co | Yujin Robot vs. Daejoo Electronic Materials | Yujin Robot vs. Sung Bo Chemicals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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