Correlation Between Yura Tech and Lion Chemtech
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Lion Chemtech 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 Lion Chemtech 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 Lion Chemtech Co, you can compare the effects of market volatilities on Yura Tech and Lion Chemtech 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 Lion Chemtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Lion Chemtech.
Diversification Opportunities for Yura Tech and Lion Chemtech
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yura and Lion is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Lion Chemtech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Chemtech 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 Lion Chemtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Chemtech has no effect on the direction of Yura Tech i.e., Yura Tech and Lion Chemtech go up and down completely randomly.
Pair Corralation between Yura Tech and Lion Chemtech
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.95 times more return on investment than Lion Chemtech. However, Yura Tech Co is 1.05 times less risky than Lion Chemtech. It trades about 0.02 of its potential returns per unit of risk. Lion Chemtech Co is currently generating about 0.0 per unit of risk. If you would invest 727,530 in Yura Tech Co on November 2, 2024 and sell it today you would earn a total of 102,470 from holding Yura Tech Co or generate 14.08% 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. Lion Chemtech Co
Performance |
| Timeline |
| Yura Tech |
| Lion Chemtech |
Yura Tech and Lion Chemtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Lion Chemtech
The main advantage of trading using opposite Yura Tech and Lion Chemtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Lion Chemtech 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 Lion Chemtech will offset losses from the drop in Lion Chemtech's long position.| Yura Tech vs. Homecast CoLtd | Yura Tech vs. Hyundai Green Food | Yura Tech vs. Vitzro Tech Co | Yura Tech vs. SS TECH |
| Lion Chemtech vs. Worldex Industry Trading | Lion Chemtech vs. Daol Investment Securities | Lion Chemtech vs. Coloray International Investment | Lion Chemtech vs. Sangsangin Investment Securities |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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