Correlation Between Myoung Shin and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Myoung Shin 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 Myoung Shin and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myoung Shin Industrial and Youngsin Metal Industrial, you can compare the effects of market volatilities on Myoung Shin 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 Myoung Shin with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and Youngsin Metal.
Diversification Opportunities for Myoung Shin and Youngsin Metal
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Myoung and Youngsin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial 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 Myoung Shin 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 Myoung Shin Industrial 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 Myoung Shin i.e., Myoung Shin and Youngsin Metal go up and down completely randomly.
Pair Corralation between Myoung Shin and Youngsin Metal
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to under-perform the Youngsin Metal. In addition to that, Myoung Shin is 1.11 times more volatile than Youngsin Metal Industrial. It trades about -0.01 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 275,500 in Youngsin Metal Industrial on September 19, 2024 and sell it today you would lose (16,500) from holding Youngsin Metal Industrial or give up 5.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Myoung Shin Industrial vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Myoung Shin Industrial |
| Youngsin Metal Industrial |
Myoung Shin and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and Youngsin Metal
The main advantage of trading using opposite Myoung Shin and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin 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.| Myoung Shin vs. i Components Co | Myoung Shin vs. Naver | Myoung Shin vs. Busan Industrial Co | Myoung Shin vs. Busan Ind |
| Youngsin Metal vs. Korea New Network | Youngsin Metal vs. Solution Advanced Technology | Youngsin Metal vs. Busan Industrial Co | Youngsin Metal vs. Busan Ind |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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