Correlation Between Youngbo Chemical and Hanil Chemical
Can any of the company-specific risk be diversified away by investing in both Youngbo Chemical and Hanil Chemical 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 Hanil Chemical 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 Hanil Chemical Ind, you can compare the effects of market volatilities on Youngbo Chemical and Hanil Chemical 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 Hanil Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngbo Chemical and Hanil Chemical.
Diversification Opportunities for Youngbo Chemical and Hanil Chemical
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Youngbo and Hanil is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Youngbo Chemical Co and Hanil Chemical Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanil Chemical Ind 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 Hanil Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanil Chemical Ind has no effect on the direction of Youngbo Chemical i.e., Youngbo Chemical and Hanil Chemical go up and down completely randomly.
Pair Corralation between Youngbo Chemical and Hanil Chemical
Assuming the 90 days trading horizon Youngbo Chemical Co is expected to generate 0.4 times more return on investment than Hanil Chemical. However, Youngbo Chemical Co is 2.51 times less risky than Hanil Chemical. It trades about 0.01 of its potential returns per unit of risk. Hanil Chemical Ind is currently generating about -0.01 per unit of risk. If you would invest 352,993 in Youngbo Chemical Co on October 7, 2024 and sell it today you would earn a total of 19,507 from holding Youngbo Chemical Co or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngbo Chemical Co vs. Hanil Chemical Ind
Performance |
| Timeline |
| Youngbo Chemical |
| Hanil Chemical Ind |
Youngbo Chemical and Hanil Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngbo Chemical and Hanil Chemical
The main advantage of trading using opposite Youngbo Chemical and Hanil Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngbo Chemical position performs unexpectedly, Hanil Chemical 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 Hanil Chemical will offset losses from the drop in Hanil Chemical's long position.| Youngbo Chemical vs. AptaBio Therapeutics | Youngbo Chemical vs. Daewoo SBI SPAC | Youngbo Chemical vs. Dream Security co | Youngbo Chemical vs. Microfriend |
| Hanil Chemical vs. LG Chemicals | Hanil Chemical vs. POSCO Holdings | Hanil Chemical vs. Hanwha Solutions | Hanil Chemical vs. Lotte Chemical Corp |
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
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |