Correlation Between Kumho Petro and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Kumho Petro 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 Kumho Petro and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kumho Petro Chemical and Yujin Robot Co, you can compare the effects of market volatilities on Kumho Petro 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 Kumho Petro with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kumho Petro and Yujin Robot.
Diversification Opportunities for Kumho Petro and Yujin Robot
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kumho and Yujin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kumho Petro Chemical and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Kumho Petro 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 Kumho Petro Chemical 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 Kumho Petro i.e., Kumho Petro and Yujin Robot go up and down completely randomly.
Pair Corralation between Kumho Petro and Yujin Robot
Assuming the 90 days trading horizon Kumho Petro Chemical is expected to under-perform the Yujin Robot. But the stock apears to be less risky and, when comparing its historical volatility, Kumho Petro Chemical is 2.95 times less risky than Yujin Robot. The stock trades about -0.18 of its potential returns per unit of risk. The Yujin Robot Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 510,000 in Yujin Robot Co on September 13, 2024 and sell it today you would earn a total of 91,000 from holding Yujin Robot Co or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kumho Petro Chemical vs. Yujin Robot Co
Performance |
| Timeline |
| Kumho Petro Chemical |
| Yujin Robot |
Kumho Petro and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kumho Petro and Yujin Robot
The main advantage of trading using opposite Kumho Petro and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kumho Petro 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.| Kumho Petro vs. SK Chemicals Co | Kumho Petro vs. SK Chemicals Co | Kumho Petro vs. Solution Advanced Technology | Kumho Petro vs. Busan Industrial Co |
| Yujin Robot vs. DB Insurance Co | Yujin Robot vs. Koryo Credit Information | Yujin Robot vs. Daelim Industrial Co | Yujin Robot vs. Songwon Industrial 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |