Correlation Between Yooshin Engineering and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Yooshin Engineering and KT Submarine 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 Yooshin Engineering and KT Submarine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yooshin Engineering and KT Submarine Co, you can compare the effects of market volatilities on Yooshin Engineering and KT Submarine 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 Yooshin Engineering with a short position of KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yooshin Engineering and KT Submarine.
Diversification Opportunities for Yooshin Engineering and KT Submarine
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yooshin and 060370 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Yooshin Engineering and KT Submarine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine and Yooshin Engineering 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 Yooshin Engineering are associated (or correlated) with KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine has no effect on the direction of Yooshin Engineering i.e., Yooshin Engineering and KT Submarine go up and down completely randomly.
Pair Corralation between Yooshin Engineering and KT Submarine
Assuming the 90 days trading horizon Yooshin Engineering is expected to generate 0.7 times more return on investment than KT Submarine. However, Yooshin Engineering is 1.43 times less risky than KT Submarine. It trades about 0.14 of its potential returns per unit of risk. KT Submarine Co is currently generating about -0.04 per unit of risk. If you would invest 2,265,000 in Yooshin Engineering on August 28, 2024 and sell it today you would earn a total of 225,000 from holding Yooshin Engineering or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yooshin Engineering vs. KT Submarine Co
Performance |
| Timeline |
| Yooshin Engineering |
| KT Submarine |
Yooshin Engineering and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yooshin Engineering and KT Submarine
The main advantage of trading using opposite Yooshin Engineering and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yooshin Engineering position performs unexpectedly, KT Submarine 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 KT Submarine will offset losses from the drop in KT Submarine's long position.| Yooshin Engineering vs. Kukil Metal Co | Yooshin Engineering vs. Dongbang Transport Logistics | Yooshin Engineering vs. DONGKUK TED METAL | Yooshin Engineering vs. Lotte Chilsung Beverage |
| KT Submarine vs. Hanyang ENG Co | KT Submarine vs. Nam Hwa Construction | KT Submarine vs. Yooshin Engineering | KT Submarine vs. Sebo Manufacturing Engineering |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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