Correlation Between Yura Tech and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Daewoo SBI 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 Daewoo SBI 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 Daewoo SBI SPAC, you can compare the effects of market volatilities on Yura Tech and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Daewoo SBI.
Diversification Opportunities for Yura Tech and Daewoo SBI
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yura and Daewoo is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Yura Tech i.e., Yura Tech and Daewoo SBI go up and down completely randomly.
Pair Corralation between Yura Tech and Daewoo SBI
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 1.53 times more return on investment than Daewoo SBI. However, Yura Tech is 1.53 times more volatile than Daewoo SBI SPAC. It trades about 0.02 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.03 per unit of risk. If you would invest 731,344 in Yura Tech Co on October 14, 2024 and sell it today you would earn a total of 80,656 from holding Yura Tech Co or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Yura Tech |
| Daewoo SBI SPAC |
Yura Tech and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Daewoo SBI
The main advantage of trading using opposite Yura Tech and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Yura Tech vs. Jinro Distillers Co | Yura Tech vs. EBEST Investment Securities | Yura Tech vs. Hanmi Semiconductor Co | Yura Tech vs. Korea Alcohol Industrial |
| Daewoo SBI vs. SEOWONINTECHCoLtd | Daewoo SBI vs. Orbitech Co | Daewoo SBI vs. Yura Tech Co | Daewoo SBI vs. Narae Nanotech Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |