Correlation Between EBEST Investment and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Yujin Robot 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 EBEST Investment and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBEST Investment Securities and Yujin Robot Co, you can compare the effects of market volatilities on EBEST Investment and Yujin Robot 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 EBEST Investment with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Yujin Robot.
Diversification Opportunities for EBEST Investment and Yujin Robot
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EBEST and Yujin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and EBEST Investment 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 EBEST Investment Securities are associated (or correlated) with Yujin Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yujin Robot has no effect on the direction of EBEST Investment i.e., EBEST Investment and Yujin Robot go up and down completely randomly.
Pair Corralation between EBEST Investment and Yujin Robot
Assuming the 90 days trading horizon EBEST Investment is expected to generate 11.36 times less return on investment than Yujin Robot. But when comparing it to its historical volatility, EBEST Investment Securities is 3.58 times less risky than Yujin Robot. It trades about 0.1 of its potential returns per unit of risk. Yujin Robot Co is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 533,000 in Yujin Robot Co on October 9, 2024 and sell it today you would earn a total of 200,000 from holding Yujin Robot Co or generate 37.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Yujin Robot Co
Performance |
| Timeline |
| EBEST Investment Sec |
| Yujin Robot |
EBEST Investment and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Yujin Robot
The main advantage of trading using opposite EBEST Investment and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Yujin Robot 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 Yujin Robot will offset losses from the drop in Yujin Robot's long position.| EBEST Investment vs. Hotel Shilla Co | EBEST Investment vs. Top Material Co | EBEST Investment vs. LG Household Healthcare | EBEST Investment vs. Taegu Broadcasting |
| Yujin Robot vs. Formetal Co | Yujin Robot vs. Kukdong Oil Chemicals | Yujin Robot vs. Daiyang Metal Co | Yujin Robot vs. Kbi Metal 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |