Correlation Between Yura Tech and HB Technology
Can any of the company-specific risk be diversified away by investing in both Yura Tech and HB Technology 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 HB Technology 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 HB Technology TD, you can compare the effects of market volatilities on Yura Tech and HB Technology 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 HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and HB Technology.
Diversification Opportunities for Yura Tech and HB Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yura and 078150 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD 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 HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of Yura Tech i.e., Yura Tech and HB Technology go up and down completely randomly.
Pair Corralation between Yura Tech and HB Technology
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.33 times more return on investment than HB Technology. However, Yura Tech Co is 2.99 times less risky than HB Technology. It trades about -0.09 of its potential returns per unit of risk. HB Technology TD is currently generating about -0.06 per unit of risk. If you would invest 766,000 in Yura Tech Co on August 28, 2024 and sell it today you would lose (130,000) from holding Yura Tech Co or give up 16.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. HB Technology TD
Performance |
| Timeline |
| Yura Tech |
| HB Technology TD |
Yura Tech and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and HB Technology
The main advantage of trading using opposite Yura Tech and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology's long position.| Yura Tech vs. Busan Industrial Co | Yura Tech vs. Busan Ind | Yura Tech vs. Mirae Asset Daewoo | Yura Tech vs. UNISEM Co |
| HB Technology vs. Korea Real Estate | HB Technology vs. Korea Ratings Co | HB Technology vs. IQuest Co | HB Technology vs. Wonbang 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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