Correlation Between Koryo Credit and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Yujin Robot 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 Koryo Credit and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Yujin Robot Co, you can compare the effects of market volatilities on Koryo Credit and Yujin Robot 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 Koryo Credit with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Yujin Robot.
Diversification Opportunities for Koryo Credit and Yujin Robot
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koryo and Yujin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with Yujin Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yujin Robot has no effect on the direction of Koryo Credit i.e., Koryo Credit and Yujin Robot go up and down completely randomly.
Pair Corralation between Koryo Credit and Yujin Robot
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.37 times more return on investment than Yujin Robot. However, Koryo Credit Information is 2.69 times less risky than Yujin Robot. It trades about 0.05 of its potential returns per unit of risk. Yujin Robot Co is currently generating about -0.07 per unit of risk. If you would invest 888,793 in Koryo Credit Information on September 14, 2024 and sell it today you would earn a total of 127,207 from holding Koryo Credit Information or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Yujin Robot Co
Performance |
| Timeline |
| Koryo Credit Information |
| Yujin Robot |
Koryo Credit and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Yujin Robot
The main advantage of trading using opposite Koryo Credit and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Yujin Robot 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 Yujin Robot will offset losses from the drop in Yujin Robot's long position.| Koryo Credit vs. Korea New Network | Koryo Credit vs. Solution Advanced Technology | Koryo Credit vs. Busan Industrial Co | Koryo Credit vs. Busan Ind |
| Yujin Robot vs. Kbi Metal Co | Yujin Robot vs. Lotte Non Life Insurance | Yujin Robot vs. Shinsegae Information Communication | Yujin Robot vs. Shinhan Inverse Copper |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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