Correlation Between Shinsung Delta and Young Poong
Can any of the company-specific risk be diversified away by investing in both Shinsung Delta 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 Shinsung Delta and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsung Delta Tech and Young Poong Precision, you can compare the effects of market volatilities on Shinsung Delta 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 Shinsung Delta with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsung Delta and Young Poong.
Diversification Opportunities for Shinsung Delta and Young Poong
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinsung and Young is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shinsung Delta Tech 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 Shinsung Delta 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 Shinsung Delta Tech 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 Shinsung Delta i.e., Shinsung Delta and Young Poong go up and down completely randomly.
Pair Corralation between Shinsung Delta and Young Poong
Assuming the 90 days trading horizon Shinsung Delta Tech is expected to generate 1.19 times more return on investment than Young Poong. However, Shinsung Delta is 1.19 times more volatile than Young Poong Precision. It trades about 0.07 of its potential returns per unit of risk. Young Poong Precision is currently generating about 0.05 per unit of risk. If you would invest 3,912,923 in Shinsung Delta Tech on September 4, 2024 and sell it today you would earn a total of 3,477,077 from holding Shinsung Delta Tech or generate 88.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsung Delta Tech vs. Young Poong Precision
Performance |
| Timeline |
| Shinsung Delta Tech |
| Young Poong Precision |
Shinsung Delta and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsung Delta and Young Poong
The main advantage of trading using opposite Shinsung Delta and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsung Delta 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.| Shinsung Delta vs. LG Display | Shinsung Delta vs. Hyundai Motor | Shinsung Delta vs. Hyundai Motor Co | Shinsung Delta vs. Hyundai Motor Co |
| Young Poong vs. COWINTECH Co | Young Poong vs. CS BEARING CoLtd | Young Poong vs. DAEMO Engineering Co | Young Poong vs. Seoam Machinery Industry |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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