Correlation Between Yura Tech and LG Chem
Can any of the company-specific risk be diversified away by investing in both Yura Tech and LG Chem 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 LG Chem 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 LG Chem, you can compare the effects of market volatilities on Yura Tech and LG Chem 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 LG Chem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and LG Chem.
Diversification Opportunities for Yura Tech and LG Chem
Pay attention - limited upside
The 3 months correlation between Yura and 051915 is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and LG Chem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Chem 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 LG Chem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Chem has no effect on the direction of Yura Tech i.e., Yura Tech and LG Chem go up and down completely randomly.
Pair Corralation between Yura Tech and LG Chem
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.82 times more return on investment than LG Chem. However, Yura Tech Co is 1.22 times less risky than LG Chem. It trades about 0.05 of its potential returns per unit of risk. LG Chem is currently generating about -0.53 per unit of risk. If you would invest 797,000 in Yura Tech Co on November 6, 2024 and sell it today you would earn a total of 11,000 from holding Yura Tech Co or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. LG Chem
Performance |
| Timeline |
| Yura Tech |
| LG Chem |
Yura Tech and LG Chem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and LG Chem
The main advantage of trading using opposite Yura Tech and LG Chem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, LG Chem 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 LG Chem will offset losses from the drop in LG Chem's long position.| Yura Tech vs. Nasmedia Co | Yura Tech vs. Anam Electronics Co | Yura Tech vs. Shinil Electronics Co | Yura Tech vs. DAEDUCK ELECTRONICS CoLtd |
| LG Chem vs. Shinhan Inverse Copper | LG Chem vs. Seoyon Topmetal Co | LG Chem vs. Formetal Co | LG Chem vs. Hyunwoo Industrial 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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