Correlation Between Yura Tech and Korea Information
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Korea Information 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 Korea Information 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 Korea Information Engineering, you can compare the effects of market volatilities on Yura Tech and Korea Information 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 Korea Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Korea Information.
Diversification Opportunities for Yura Tech and Korea Information
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yura and Korea is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Korea Information Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Information 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 Korea Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Information has no effect on the direction of Yura Tech i.e., Yura Tech and Korea Information go up and down completely randomly.
Pair Corralation between Yura Tech and Korea Information
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 1.11 times more return on investment than Korea Information. However, Yura Tech is 1.11 times more volatile than Korea Information Engineering. It trades about 0.03 of its potential returns per unit of risk. Korea Information Engineering is currently generating about -0.03 per unit of risk. If you would invest 761,121 in Yura Tech Co on October 17, 2024 and sell it today you would earn a total of 37,879 from holding Yura Tech Co or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Korea Information Engineering
Performance |
| Timeline |
| Yura Tech |
| Korea Information |
Yura Tech and Korea Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Korea Information
The main advantage of trading using opposite Yura Tech and Korea Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Korea Information 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 Korea Information will offset losses from the drop in Korea Information's long position.| Yura Tech vs. Dongbang Ship Machinery | Yura Tech vs. Dongkuk Structures Construction | Yura Tech vs. SEOJEON ELECTRIC MACHINERY | Yura Tech vs. Youngsin Metal Industrial |
| Korea Information vs. Top Material Co | Korea Information vs. Phoenix Materials Co | Korea Information vs. Ecoplastic | Korea Information vs. Yura Tech 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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