Correlation Between Okins Electronics and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Okins Electronics and Yura Tech 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 Okins Electronics and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Yura Tech Co, you can compare the effects of market volatilities on Okins Electronics and Yura Tech 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 Okins Electronics with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Yura Tech.
Diversification Opportunities for Okins Electronics and Yura Tech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okins and Yura is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and Okins Electronics 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 Okins Electronics Co are associated (or correlated) with Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Okins Electronics i.e., Okins Electronics and Yura Tech go up and down completely randomly.
Pair Corralation between Okins Electronics and Yura Tech
Assuming the 90 days trading horizon Okins Electronics Co is expected to under-perform the Yura Tech. In addition to that, Okins Electronics is 1.68 times more volatile than Yura Tech Co. It trades about -0.02 of its total potential returns per unit of risk. Yura Tech Co is currently generating about 0.02 per unit of volatility. If you would invest 739,926 in Yura Tech Co on November 5, 2024 and sell it today you would earn a total of 97,074 from holding Yura Tech Co or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okins Electronics Co vs. Yura Tech Co
Performance |
| Timeline |
| Okins Electronics |
| Yura Tech |
Okins Electronics and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okins Electronics and Yura Tech
The main advantage of trading using opposite Okins Electronics and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Okins Electronics vs. Guyoung Technology Co | Okins Electronics vs. BGF Retail Co | Okins Electronics vs. AeroSpace Technology of | Okins Electronics vs. GS Retail Co |
| Yura Tech vs. Nasmedia Co | Yura Tech vs. Anam Electronics Co | Yura Tech vs. Shinil Electronics Co | Yura Tech vs. DAEDUCK ELECTRONICS CoLtd |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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