Correlation Between Asiana Airlines and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines and Youngsin Metal 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 Asiana Airlines and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Youngsin Metal Industrial, you can compare the effects of market volatilities on Asiana Airlines and Youngsin Metal 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 Asiana Airlines with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Youngsin Metal.
Diversification Opportunities for Asiana Airlines and Youngsin Metal
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asiana and Youngsin is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial and Asiana Airlines 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 Asiana Airlines are associated (or correlated) with Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of Asiana Airlines i.e., Asiana Airlines and Youngsin Metal go up and down completely randomly.
Pair Corralation between Asiana Airlines and Youngsin Metal
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 0.96 times more return on investment than Youngsin Metal. However, Asiana Airlines is 1.05 times less risky than Youngsin Metal. It trades about 0.08 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.32 per unit of risk. If you would invest 1,000,000 in Asiana Airlines on September 5, 2024 and sell it today you would earn a total of 44,000 from holding Asiana Airlines or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Youngsin Metal Industrial
Performance |
| Timeline |
| Asiana Airlines |
| Youngsin Metal Industrial |
Asiana Airlines and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Youngsin Metal
The main advantage of trading using opposite Asiana Airlines and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| Asiana Airlines vs. AptaBio Therapeutics | Asiana Airlines vs. Daewoo SBI SPAC | Asiana Airlines vs. Dream Security co | Asiana Airlines vs. Microfriend |
| Youngsin Metal vs. Asiana Airlines | Youngsin Metal vs. SKONEC Entertainment Co | Youngsin Metal vs. ChipsMedia | Youngsin Metal vs. Alton Sports CoLtd |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |