Correlation Between Yura Tech and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Yura Tech and DONGKUK TED 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 DONGKUK TED 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 DONGKUK TED METAL, you can compare the effects of market volatilities on Yura Tech and DONGKUK TED 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 DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and DONGKUK TED.
Diversification Opportunities for Yura Tech and DONGKUK TED
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yura and DONGKUK is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL 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 DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Yura Tech i.e., Yura Tech and DONGKUK TED go up and down completely randomly.
Pair Corralation between Yura Tech and DONGKUK TED
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 1.2 times more return on investment than DONGKUK TED. However, Yura Tech is 1.2 times more volatile than DONGKUK TED METAL. It trades about 0.02 of its potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.09 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 Against |
| Strength | Insignificant |
| Accuracy | 79.88% |
| Values | Daily Returns |
Yura Tech Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| Yura Tech |
| DONGKUK TED METAL |
Yura Tech and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and DONGKUK TED
The main advantage of trading using opposite Yura Tech and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| Yura Tech vs. E Investment Development | Yura Tech vs. Neungyule Education | Yura Tech vs. Atinum Investment Co | Yura Tech vs. LB Investment |
| DONGKUK TED vs. Yura Tech Co | DONGKUK TED vs. Dongbu Insurance Co | DONGKUK TED vs. Narae Nanotech Corp | DONGKUK TED vs. N2Tech Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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