Correlation Between Youngbo Chemical and Korea Petro
Can any of the company-specific risk be diversified away by investing in both Youngbo Chemical and Korea Petro 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 Youngbo Chemical and Korea Petro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngbo Chemical Co and Korea Petro Chemical, you can compare the effects of market volatilities on Youngbo Chemical and Korea Petro 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 Youngbo Chemical with a short position of Korea Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngbo Chemical and Korea Petro.
Diversification Opportunities for Youngbo Chemical and Korea Petro
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youngbo and Korea is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Youngbo Chemical Co and Korea Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Petro Chemical and Youngbo Chemical 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 Youngbo Chemical Co are associated (or correlated) with Korea Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Petro Chemical has no effect on the direction of Youngbo Chemical i.e., Youngbo Chemical and Korea Petro go up and down completely randomly.
Pair Corralation between Youngbo Chemical and Korea Petro
Assuming the 90 days trading horizon Youngbo Chemical Co is expected to generate 0.33 times more return on investment than Korea Petro. However, Youngbo Chemical Co is 3.03 times less risky than Korea Petro. It trades about -0.04 of its potential returns per unit of risk. Korea Petro Chemical is currently generating about -0.15 per unit of risk. If you would invest 361,000 in Youngbo Chemical Co on September 2, 2024 and sell it today you would lose (18,000) from holding Youngbo Chemical Co or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngbo Chemical Co vs. Korea Petro Chemical
Performance |
| Timeline |
| Youngbo Chemical |
| Korea Petro Chemical |
Youngbo Chemical and Korea Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngbo Chemical and Korea Petro
The main advantage of trading using opposite Youngbo Chemical and Korea Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngbo Chemical position performs unexpectedly, Korea Petro 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 Korea Petro will offset losses from the drop in Korea Petro's long position.| Youngbo Chemical vs. AptaBio Therapeutics | Youngbo Chemical vs. Daewoo SBI SPAC | Youngbo Chemical vs. Dream Security co | Youngbo Chemical vs. Microfriend |
| Korea Petro vs. LG Chemicals | Korea Petro vs. POSCO Holdings | Korea Petro vs. Hanwha Solutions | Korea Petro vs. Hyundai Steel |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |