Correlation Between Young Poong and CS BEARING
Can any of the company-specific risk be diversified away by investing in both Young Poong and CS BEARING 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 CS BEARING 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 CS BEARING CoLtd, you can compare the effects of market volatilities on Young Poong and CS BEARING 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 CS BEARING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Young Poong and CS BEARING.
Diversification Opportunities for Young Poong and CS BEARING
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Young and 297090 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Young Poong Precision and CS BEARING CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS BEARING CoLtd 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 CS BEARING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS BEARING CoLtd has no effect on the direction of Young Poong i.e., Young Poong and CS BEARING go up and down completely randomly.
Pair Corralation between Young Poong and CS BEARING
Assuming the 90 days trading horizon Young Poong Precision is expected to generate 1.25 times more return on investment than CS BEARING. However, Young Poong is 1.25 times more volatile than CS BEARING CoLtd. It trades about 0.03 of its potential returns per unit of risk. CS BEARING CoLtd is currently generating about -0.04 per unit of risk. If you would invest 1,119,652 in Young Poong Precision on September 1, 2024 and sell it today you would earn a total of 295,348 from holding Young Poong Precision or generate 26.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Young Poong Precision vs. CS BEARING CoLtd
Performance |
| Timeline |
| Young Poong Precision |
| CS BEARING CoLtd |
Young Poong and CS BEARING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Young Poong and CS BEARING
The main advantage of trading using opposite Young Poong and CS BEARING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Young Poong position performs unexpectedly, CS BEARING 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 CS BEARING will offset losses from the drop in CS BEARING's long position.| Young Poong vs. DB Insurance Co | Young Poong vs. Samlip General Foods | Young Poong vs. Daedong Metals Co | Young Poong vs. Shinhan Inverse Copper |
| CS BEARING vs. Foodnamoo | CS BEARING vs. Hyundai Green Food | CS BEARING vs. CKH Food Health | CS BEARING vs. Orbitech 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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