Correlation Between Young Poong and Haisung TPC
Can any of the company-specific risk be diversified away by investing in both Young Poong and Haisung TPC 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 Young Poong and Haisung TPC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Young Poong Precision and Haisung TPC Co, you can compare the effects of market volatilities on Young Poong and Haisung TPC 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 Young Poong with a short position of Haisung TPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Young Poong and Haisung TPC.
Diversification Opportunities for Young Poong and Haisung TPC
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Young and Haisung is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Young Poong Precision and Haisung TPC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haisung TPC and Young Poong 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 Young Poong Precision are associated (or correlated) with Haisung TPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haisung TPC has no effect on the direction of Young Poong i.e., Young Poong and Haisung TPC go up and down completely randomly.
Pair Corralation between Young Poong and Haisung TPC
Assuming the 90 days trading horizon Young Poong Precision is expected to generate 1.41 times more return on investment than Haisung TPC. However, Young Poong is 1.41 times more volatile than Haisung TPC Co. It trades about 0.06 of its potential returns per unit of risk. Haisung TPC Co is currently generating about -0.08 per unit of risk. If you would invest 1,203,000 in Young Poong Precision on August 25, 2024 and sell it today you would earn a total of 254,000 from holding Young Poong Precision or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Young Poong Precision vs. Haisung TPC Co
Performance |
| Timeline |
| Young Poong Precision |
| Haisung TPC |
Young Poong and Haisung TPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Young Poong and Haisung TPC
The main advantage of trading using opposite Young Poong and Haisung TPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Young Poong position performs unexpectedly, Haisung TPC 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 Haisung TPC will offset losses from the drop in Haisung TPC's long position.| Young Poong vs. Rainbow Robotics | Young Poong vs. COWINTECH Co | Young Poong vs. CS BEARING CoLtd | Young Poong vs. DAEMO Engineering Co |
| Haisung TPC vs. Rainbow Robotics | Haisung TPC vs. COWINTECH Co | Haisung TPC vs. CS BEARING CoLtd | Haisung TPC vs. DAEMO Engineering Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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