Correlation Between Playgram and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Playgram and Youngsin Metal 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 Playgram and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playgram Co and Youngsin Metal Industrial, you can compare the effects of market volatilities on Playgram and Youngsin Metal 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 Playgram with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playgram and Youngsin Metal.
Diversification Opportunities for Playgram and Youngsin Metal
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Playgram and Youngsin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Playgram Co and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial and Playgram 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 Playgram Co are associated (or correlated) with Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Playgram i.e., Playgram and Youngsin Metal go up and down completely randomly.
Pair Corralation between Playgram and Youngsin Metal
Assuming the 90 days trading horizon Playgram Co is expected to under-perform the Youngsin Metal. In addition to that, Playgram is 1.91 times more volatile than Youngsin Metal Industrial. It trades about -0.02 of its total potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.01 per unit of volatility. If you would invest 277,000 in Youngsin Metal Industrial on September 2, 2024 and sell it today you would lose (59,000) from holding Youngsin Metal Industrial or give up 21.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playgram Co vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Playgram |
| Youngsin Metal Industrial |
Playgram and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playgram and Youngsin Metal
The main advantage of trading using opposite Playgram and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playgram position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Hanwha Solutions | Playgram vs. Hyundai Steel |
| Youngsin Metal vs. Digital Power Communications | Youngsin Metal vs. Iljin Display | Youngsin Metal vs. Lake Materials Co | Youngsin Metal vs. National Plastic 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |