Correlation Between Yura Tech and Korean Drug
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Korean Drug 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 Yura Tech and Korean Drug into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yura Tech Co and Korean Drug Co, you can compare the effects of market volatilities on Yura Tech and Korean Drug 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 Yura Tech with a short position of Korean Drug. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Korean Drug.
Diversification Opportunities for Yura Tech and Korean Drug
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yura and Korean is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Korean Drug Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Drug and Yura Tech 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 Yura Tech Co are associated (or correlated) with Korean Drug. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Drug has no effect on the direction of Yura Tech i.e., Yura Tech and Korean Drug go up and down completely randomly.
Pair Corralation between Yura Tech and Korean Drug
Assuming the 90 days trading horizon Yura Tech is expected to generate 1.06 times less return on investment than Korean Drug. In addition to that, Yura Tech is 1.1 times more volatile than Korean Drug Co. It trades about 0.18 of its total potential returns per unit of risk. Korean Drug Co is currently generating about 0.21 per unit of volatility. If you would invest 425,957 in Korean Drug Co on October 12, 2024 and sell it today you would earn a total of 66,043 from holding Korean Drug Co or generate 15.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Yura Tech Co vs. Korean Drug Co
Performance |
Timeline |
Yura Tech |
Korean Drug |
Yura Tech and Korean Drug Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yura Tech and Korean Drug
The main advantage of trading using opposite Yura Tech and Korean Drug positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Korean Drug 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 Korean Drug will offset losses from the drop in Korean Drug's long position.Yura Tech vs. GS Retail Co | Yura Tech vs. Samsung Electronics Co | Yura Tech vs. Shinil Electronics Co | Yura Tech vs. DAEDUCK ELECTRONICS CoLtd |
Korean Drug vs. Yura Tech Co | Korean Drug vs. Lotte Non Life Insurance | Korean Drug vs. SS TECH | Korean Drug vs. Samsung Publishing 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Fundamental Analysis View fundamental data based on most recent published financial statements |