Correlation Between LG Display and Yura Tech
Can any of the company-specific risk be diversified away by investing in both LG Display and Yura Tech 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 LG Display and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Display and Yura Tech Co, you can compare the effects of market volatilities on LG Display and Yura Tech 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 LG Display with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and Yura Tech.
Diversification Opportunities for LG Display and Yura Tech
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 034220 and Yura is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding LG Display and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and LG Display 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 LG Display are associated (or correlated) with Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of LG Display i.e., LG Display and Yura Tech go up and down completely randomly.
Pair Corralation between LG Display and Yura Tech
Assuming the 90 days trading horizon LG Display is expected to under-perform the Yura Tech. In addition to that, LG Display is 1.66 times more volatile than Yura Tech Co. It trades about -0.26 of its total potential returns per unit of risk. Yura Tech Co is currently generating about -0.29 per unit of volatility. If you would invest 668,000 in Yura Tech Co on September 2, 2024 and sell it today you would lose (38,000) from holding Yura Tech Co or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Display vs. Yura Tech Co
Performance |
| Timeline |
| LG Display |
| Yura Tech |
LG Display and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Display and Yura Tech
The main advantage of trading using opposite LG Display and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| LG Display vs. Dongsin Engineering Construction | LG Display vs. Doosan Fuel Cell | LG Display vs. Daishin Balance 1 | LG Display vs. Total Soft Bank |
| Yura Tech vs. LG Display | Yura Tech vs. Hyundai Motor Co | Yura Tech vs. Hyundai Motor Co | Yura Tech vs. Adaptive Plasma Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |