Correlation Between Seoul Semiconductor and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Seoul Semiconductor 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 Seoul Semiconductor and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Semiconductor Co and Yura Tech Co, you can compare the effects of market volatilities on Seoul Semiconductor 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 Seoul Semiconductor with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Semiconductor and Yura Tech.
Diversification Opportunities for Seoul Semiconductor and Yura Tech
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seoul and Yura is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Semiconductor Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and Seoul Semiconductor 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 Seoul Semiconductor Co 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 Seoul Semiconductor i.e., Seoul Semiconductor and Yura Tech go up and down completely randomly.
Pair Corralation between Seoul Semiconductor and Yura Tech
Assuming the 90 days trading horizon Seoul Semiconductor Co is expected to under-perform the Yura Tech. In addition to that, Seoul Semiconductor is 2.59 times more volatile than Yura Tech Co. It trades about -0.51 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Semiconductor Co vs. Yura Tech Co
Performance |
| Timeline |
| Seoul Semiconductor |
| Yura Tech |
Seoul Semiconductor and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Semiconductor and Yura Tech
The main advantage of trading using opposite Seoul Semiconductor and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Semiconductor 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.| Seoul Semiconductor vs. Dongsin Engineering Construction | Seoul Semiconductor vs. Doosan Fuel Cell | Seoul Semiconductor vs. Daishin Balance 1 | Seoul Semiconductor 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |