Correlation Between Youngbo Chemical and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Youngbo Chemical and Hyundai Home 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 Hyundai Home 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 Hyundai Home Shopping, you can compare the effects of market volatilities on Youngbo Chemical and Hyundai Home 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 Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngbo Chemical and Hyundai Home.
Diversification Opportunities for Youngbo Chemical and Hyundai Home
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youngbo and Hyundai is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Youngbo Chemical Co and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping 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 Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Youngbo Chemical i.e., Youngbo Chemical and Hyundai Home go up and down completely randomly.
Pair Corralation between Youngbo Chemical and Hyundai Home
Assuming the 90 days trading horizon Youngbo Chemical Co is expected to generate 0.86 times more return on investment than Hyundai Home. However, Youngbo Chemical Co is 1.16 times less risky than Hyundai Home. It trades about 0.01 of its potential returns per unit of risk. Hyundai Home Shopping 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. Hyundai Home Shopping
Performance |
| Timeline |
| Youngbo Chemical |
| Hyundai Home Shopping |
Youngbo Chemical and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngbo Chemical and Hyundai Home
The main advantage of trading using opposite Youngbo Chemical and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngbo Chemical position performs unexpectedly, Hyundai Home 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 Hyundai Home will offset losses from the drop in Hyundai Home's long position.| Youngbo Chemical vs. AptaBio Therapeutics | Youngbo Chemical vs. Daewoo SBI SPAC | Youngbo Chemical vs. Dream Security co | Youngbo Chemical vs. Microfriend |
| Hyundai Home vs. AptaBio Therapeutics | Hyundai Home vs. Daewoo SBI SPAC | Hyundai Home vs. Dream Security co | Hyundai Home vs. Microfriend |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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