Correlation Between Chin Yang and FLITTO
Can any of the company-specific risk be diversified away by investing in both Chin Yang and FLITTO 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 Chin Yang and FLITTO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chin Yang Chemical and FLITTO Inc, you can compare the effects of market volatilities on Chin Yang and FLITTO 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 Chin Yang with a short position of FLITTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chin Yang and FLITTO.
Diversification Opportunities for Chin Yang and FLITTO
Good diversification
The 3 months correlation between Chin and FLITTO is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Chin Yang Chemical and FLITTO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLITTO Inc and Chin Yang 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 Chin Yang Chemical are associated (or correlated) with FLITTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLITTO Inc has no effect on the direction of Chin Yang i.e., Chin Yang and FLITTO go up and down completely randomly.
Pair Corralation between Chin Yang and FLITTO
Assuming the 90 days trading horizon Chin Yang Chemical is expected to under-perform the FLITTO. But the stock apears to be less risky and, when comparing its historical volatility, Chin Yang Chemical is 2.58 times less risky than FLITTO. The stock trades about -0.25 of its potential returns per unit of risk. The FLITTO Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,509,000 in FLITTO Inc on September 4, 2024 and sell it today you would earn a total of 426,000 from holding FLITTO Inc or generate 28.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chin Yang Chemical vs. FLITTO Inc
Performance |
| Timeline |
| Chin Yang Chemical |
| FLITTO Inc |
Chin Yang and FLITTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chin Yang and FLITTO
The main advantage of trading using opposite Chin Yang and FLITTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chin Yang position performs unexpectedly, FLITTO 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 FLITTO will offset losses from the drop in FLITTO's long position.| Chin Yang vs. AptaBio Therapeutics | Chin Yang vs. Daewoo SBI SPAC | Chin Yang vs. Dream Security co | Chin Yang vs. Microfriend |
| FLITTO vs. Youngchang Chemical Co | FLITTO vs. Youngsin Metal Industrial | FLITTO vs. Duksan Hi Metal | FLITTO vs. Dongnam Chemical 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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