Correlation Between SOOSAN INT and Younglimwon Soft
Can any of the company-specific risk be diversified away by investing in both SOOSAN INT and Younglimwon Soft 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 SOOSAN INT and Younglimwon Soft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOOSAN INT Co and Younglimwon Soft Lab, you can compare the effects of market volatilities on SOOSAN INT and Younglimwon Soft 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 SOOSAN INT with a short position of Younglimwon Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOOSAN INT and Younglimwon Soft.
Diversification Opportunities for SOOSAN INT and Younglimwon Soft
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOOSAN and Younglimwon is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SOOSAN INT Co and Younglimwon Soft Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Younglimwon Soft Lab and SOOSAN INT 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 SOOSAN INT Co are associated (or correlated) with Younglimwon Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Younglimwon Soft Lab has no effect on the direction of SOOSAN INT i.e., SOOSAN INT and Younglimwon Soft go up and down completely randomly.
Pair Corralation between SOOSAN INT and Younglimwon Soft
Assuming the 90 days trading horizon SOOSAN INT Co is expected to under-perform the Younglimwon Soft. In addition to that, SOOSAN INT is 1.46 times more volatile than Younglimwon Soft Lab. It trades about -0.01 of its total potential returns per unit of risk. Younglimwon Soft Lab is currently generating about -0.02 per unit of volatility. If you would invest 830,512 in Younglimwon Soft Lab on August 28, 2024 and sell it today you would lose (151,512) from holding Younglimwon Soft Lab or give up 18.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOOSAN INT Co vs. Younglimwon Soft Lab
Performance |
| Timeline |
| SOOSAN INT |
| Younglimwon Soft Lab |
SOOSAN INT and Younglimwon Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOOSAN INT and Younglimwon Soft
The main advantage of trading using opposite SOOSAN INT and Younglimwon Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOOSAN INT position performs unexpectedly, Younglimwon Soft 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 Younglimwon Soft will offset losses from the drop in Younglimwon Soft's long position.The idea behind SOOSAN INT Co and Younglimwon Soft Lab pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Younglimwon Soft vs. VAIV Co | Younglimwon Soft vs. FLITTO Inc | Younglimwon Soft vs. Innodep | Younglimwon Soft vs. WISE iTech 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |