Correlation Between Yura Tech and Seoul Semiconductor
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Seoul Semiconductor 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 Seoul Semiconductor 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 Seoul Semiconductor Co, you can compare the effects of market volatilities on Yura Tech and Seoul Semiconductor 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 Seoul Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Seoul Semiconductor.
Diversification Opportunities for Yura Tech and Seoul Semiconductor
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yura and Seoul is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Seoul Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Semiconductor 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 Seoul Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Semiconductor has no effect on the direction of Yura Tech i.e., Yura Tech and Seoul Semiconductor go up and down completely randomly.
Pair Corralation between Yura Tech and Seoul Semiconductor
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 1.56 times more return on investment than Seoul Semiconductor. However, Yura Tech is 1.56 times more volatile than Seoul Semiconductor Co. It trades about -0.01 of its potential returns per unit of risk. Seoul Semiconductor Co is currently generating about -0.06 per unit of risk. If you would invest 886,219 in Yura Tech Co on August 31, 2024 and sell it today you would lose (256,219) from holding Yura Tech Co or give up 28.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Yura Tech Co vs. Seoul Semiconductor Co
Performance |
| Timeline |
| Yura Tech |
| Seoul Semiconductor |
Yura Tech and Seoul Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Seoul Semiconductor
The main advantage of trading using opposite Yura Tech and Seoul Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Seoul Semiconductor 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 Seoul Semiconductor will offset losses from the drop in Seoul Semiconductor's long position.| Yura Tech vs. LG Display | Yura Tech vs. Hyundai Motor | Yura Tech vs. Hyundai Motor Co | Yura Tech vs. Hyundai Motor Co |
| Seoul Semiconductor vs. Dongsin Engineering Construction | Seoul Semiconductor vs. Doosan Fuel Cell | Seoul Semiconductor vs. Daishin Balance 1 | Seoul Semiconductor vs. Total Soft Bank |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |