Correlation Between Yura Tech and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Grand Korea 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 Grand Korea 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 Grand Korea Leisure, you can compare the effects of market volatilities on Yura Tech and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Grand Korea.
Diversification Opportunities for Yura Tech and Grand Korea
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yura and Grand is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Yura Tech i.e., Yura Tech and Grand Korea go up and down completely randomly.
Pair Corralation between Yura Tech and Grand Korea
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.9 times more return on investment than Grand Korea. However, Yura Tech Co is 1.11 times less risky than Grand Korea. It trades about 0.07 of its potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.03 per unit of risk. If you would invest 685,000 in Yura Tech Co on September 13, 2024 and sell it today you would earn a total of 37,000 from holding Yura Tech Co or generate 5.4% 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. Grand Korea Leisure
Performance |
| Timeline |
| Yura Tech |
| Grand Korea Leisure |
Yura Tech and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Grand Korea
The main advantage of trading using opposite Yura Tech and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea'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 |
| Grand Korea vs. Lion Chemtech Co | Grand Korea vs. Eagle Veterinary Technology | Grand Korea vs. Inzi Display CoLtd | Grand Korea vs. Nice Information Telecommunication |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |