Correlation Between Yura Tech and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Ewon Comfortech 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 Ewon Comfortech 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 Ewon Comfortech Co, you can compare the effects of market volatilities on Yura Tech and Ewon Comfortech 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 Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Ewon Comfortech.
Diversification Opportunities for Yura Tech and Ewon Comfortech
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yura and Ewon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech 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 Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of Yura Tech i.e., Yura Tech and Ewon Comfortech go up and down completely randomly.
Pair Corralation between Yura Tech and Ewon Comfortech
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.81 times more return on investment than Ewon Comfortech. However, Yura Tech Co is 1.23 times less risky than Ewon Comfortech. It trades about 0.07 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.04 per unit of risk. If you would invest 822,000 in Yura Tech Co on November 4, 2024 and sell it today you would earn a total of 15,000 from holding Yura Tech Co or generate 1.82% 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. Ewon Comfortech Co
Performance |
| Timeline |
| Yura Tech |
| Ewon Comfortech |
Yura Tech and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Ewon Comfortech
The main advantage of trading using opposite Yura Tech and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| Yura Tech vs. Daeduck Electronics Co | Yura Tech vs. ABOV Semiconductor Co | Yura Tech vs. ABCO Electronics Co | Yura Tech vs. SungMoon Electronics Co |
| Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Samsung Electronics Co | Ewon Comfortech vs. Hyundai Motor Co | Ewon Comfortech vs. Hyundai Motor |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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