Correlation Between Yura Tech and Woorim Machinery
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Woorim Machinery 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 Woorim Machinery 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 Woorim Machinery Co, you can compare the effects of market volatilities on Yura Tech and Woorim Machinery 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 Woorim Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Woorim Machinery.
Diversification Opportunities for Yura Tech and Woorim Machinery
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yura and Woorim is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Woorim Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woorim Machinery 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 Woorim Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woorim Machinery has no effect on the direction of Yura Tech i.e., Yura Tech and Woorim Machinery go up and down completely randomly.
Pair Corralation between Yura Tech and Woorim Machinery
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.84 times more return on investment than Woorim Machinery. However, Yura Tech Co is 1.19 times less risky than Woorim Machinery. It trades about 0.01 of its potential returns per unit of risk. Woorim Machinery Co is currently generating about 0.01 per unit of risk. If you would invest 740,251 in Yura Tech Co on September 14, 2024 and sell it today you would lose (18,251) from holding Yura Tech Co or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Woorim Machinery Co
Performance |
| Timeline |
| Yura Tech |
| Woorim Machinery |
Yura Tech and Woorim Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Woorim Machinery
The main advantage of trading using opposite Yura Tech and Woorim Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Woorim Machinery 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 Woorim Machinery will offset losses from the drop in Woorim Machinery's long position.| Yura Tech vs. Daou Data Corp | Yura Tech vs. Solution Advanced Technology | Yura Tech vs. Busan Industrial Co | Yura Tech vs. Busan Ind |
| Woorim Machinery vs. Sungchang Autotech Co | Woorim Machinery vs. Hana Financial | Woorim Machinery vs. Yura Tech Co | Woorim Machinery vs. THiRA UTECH LTD |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |