Correlation Between Yujin Robot and Kbi Metal
Can any of the company-specific risk be diversified away by investing in both Yujin Robot and Kbi Metal 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 Yujin Robot and Kbi Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yujin Robot Co and Kbi Metal Co, you can compare the effects of market volatilities on Yujin Robot and Kbi Metal 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 Yujin Robot with a short position of Kbi Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yujin Robot and Kbi Metal.
Diversification Opportunities for Yujin Robot and Kbi Metal
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yujin and Kbi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yujin Robot Co and Kbi Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kbi Metal and Yujin Robot 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 Yujin Robot Co are associated (or correlated) with Kbi Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kbi Metal has no effect on the direction of Yujin Robot i.e., Yujin Robot and Kbi Metal go up and down completely randomly.
Pair Corralation between Yujin Robot and Kbi Metal
Assuming the 90 days trading horizon Yujin Robot Co is expected to under-perform the Kbi Metal. But the stock apears to be less risky and, when comparing its historical volatility, Yujin Robot Co is 1.88 times less risky than Kbi Metal. The stock trades about -0.07 of its potential returns per unit of risk. The Kbi Metal Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 141,100 in Kbi Metal Co on September 14, 2024 and sell it today you would earn a total of 55,800 from holding Kbi Metal Co or generate 39.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Yujin Robot Co vs. Kbi Metal Co
Performance |
| Timeline |
| Yujin Robot |
| Kbi Metal |
Yujin Robot and Kbi Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yujin Robot and Kbi Metal
The main advantage of trading using opposite Yujin Robot and Kbi Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yujin Robot position performs unexpectedly, Kbi Metal 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 Kbi Metal will offset losses from the drop in Kbi Metal's long position.| 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 |
| Kbi Metal vs. Daou Data Corp | Kbi Metal vs. Solution Advanced Technology | Kbi Metal vs. Busan Industrial Co | Kbi Metal vs. Busan Ind |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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