Correlation Between Iljin Materials and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Iljin Materials 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 Iljin Materials and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Materials Co and Yujin Robot Co, you can compare the effects of market volatilities on Iljin Materials 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 Iljin Materials with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Materials and Yujin Robot.
Diversification Opportunities for Iljin Materials and Yujin Robot
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iljin and Yujin is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Materials Co and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Iljin Materials 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 Iljin Materials Co 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 Iljin Materials i.e., Iljin Materials and Yujin Robot go up and down completely randomly.
Pair Corralation between Iljin Materials and Yujin Robot
Assuming the 90 days trading horizon Iljin Materials Co is expected to under-perform the Yujin Robot. But the stock apears to be less risky and, when comparing its historical volatility, Iljin Materials Co is 1.73 times less risky than Yujin Robot. The stock trades about -0.36 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 |
Iljin Materials Co vs. Yujin Robot Co
Performance |
| Timeline |
| Iljin Materials |
| Yujin Robot |
Iljin Materials and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Materials and Yujin Robot
The main advantage of trading using opposite Iljin Materials and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Materials 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.| Iljin Materials vs. Samsung Electronics Co | Iljin Materials vs. Samsung Electronics Co | Iljin Materials vs. LG Energy Solution | Iljin Materials vs. SK Hynix |
| Yujin Robot vs. Kbi Metal Co | Yujin Robot vs. Lotte Non Life Insurance | Yujin Robot vs. Shinsegae Information Communication | Yujin Robot vs. Shinhan Inverse Copper |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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