Correlation Between Haisung TPC and Young Poong
Can any of the company-specific risk be diversified away by investing in both Haisung TPC and Young Poong 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 Haisung TPC and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haisung TPC Co and Young Poong Precision, you can compare the effects of market volatilities on Haisung TPC and Young Poong 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 Haisung TPC with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haisung TPC and Young Poong.
Diversification Opportunities for Haisung TPC and Young Poong
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haisung and Young is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Haisung TPC Co and Young Poong Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Precision and Haisung TPC 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 Haisung TPC Co are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Precision has no effect on the direction of Haisung TPC i.e., Haisung TPC and Young Poong go up and down completely randomly.
Pair Corralation between Haisung TPC and Young Poong
Assuming the 90 days trading horizon Haisung TPC is expected to generate 1.17 times less return on investment than Young Poong. In addition to that, Haisung TPC is 1.28 times more volatile than Young Poong Precision. It trades about 0.02 of its total potential returns per unit of risk. Young Poong Precision is currently generating about 0.02 per unit of volatility. If you would invest 1,330,847 in Young Poong Precision on August 25, 2024 and sell it today you would earn a total of 126,153 from holding Young Poong Precision or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haisung TPC Co vs. Young Poong Precision
Performance |
| Timeline |
| Haisung TPC |
| Young Poong Precision |
Haisung TPC and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haisung TPC and Young Poong
The main advantage of trading using opposite Haisung TPC and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haisung TPC position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Haisung TPC vs. Rainbow Robotics | Haisung TPC vs. COWINTECH Co | Haisung TPC vs. CS BEARING CoLtd | Haisung TPC vs. DAEMO Engineering Co |
| Young Poong vs. Rainbow Robotics | Young Poong vs. COWINTECH Co | Young Poong vs. CS BEARING CoLtd | Young Poong vs. DAEMO Engineering 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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