Correlation Between Korea Information and Young Poong
Can any of the company-specific risk be diversified away by investing in both Korea Information and Young Poong 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 Korea Information and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Communications and Young Poong Corp, you can compare the effects of market volatilities on Korea Information and Young Poong 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 Korea Information with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and Young Poong.
Diversification Opportunities for Korea Information and Young Poong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Korea and Young is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and Korea Information 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 Korea Information Communications are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Corp has no effect on the direction of Korea Information i.e., Korea Information and Young Poong go up and down completely randomly.
Pair Corralation between Korea Information and Young Poong
Assuming the 90 days trading horizon Korea Information is expected to generate 4.17 times less return on investment than Young Poong. But when comparing it to its historical volatility, Korea Information Communications is 3.41 times less risky than Young Poong. It trades about 0.12 of its potential returns per unit of risk. Young Poong Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 38,200,000 in Young Poong Corp on October 28, 2024 and sell it today you would earn a total of 3,150,000 from holding Young Poong Corp or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Communicatio vs. Young Poong Corp
Performance |
| Timeline |
| Korea Information |
| Young Poong Corp |
Korea Information and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and Young Poong
The main advantage of trading using opposite Korea Information and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Korea Information vs. Settlebank | Korea Information vs. Digital Multimedia Technology | Korea Information vs. BNK Financial Group | Korea Information vs. Korean Reinsurance Co |
| Young Poong vs. Samsung Electronics Co | Young Poong vs. Samsung Electronics Co | Young Poong vs. LG Energy Solution | Young Poong vs. SK Hynix |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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