Correlation Between Dongwoo Farm and Yujin Robot
Can any of the company-specific risk be diversified away by investing in both Dongwoo Farm 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 Dongwoo Farm and Yujin Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwoo Farm To and Yujin Robot Co, you can compare the effects of market volatilities on Dongwoo Farm 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 Dongwoo Farm with a short position of Yujin Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoo Farm and Yujin Robot.
Diversification Opportunities for Dongwoo Farm and Yujin Robot
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongwoo and Yujin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoo Farm To and Yujin Robot Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yujin Robot and Dongwoo Farm 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 Dongwoo Farm To 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 Dongwoo Farm i.e., Dongwoo Farm and Yujin Robot go up and down completely randomly.
Pair Corralation between Dongwoo Farm and Yujin Robot
Assuming the 90 days trading horizon Dongwoo Farm is expected to generate 91.38 times less return on investment than Yujin Robot. But when comparing it to its historical volatility, Dongwoo Farm To is 3.28 times less risky than Yujin Robot. It trades about 0.0 of its potential returns per unit of risk. Yujin Robot Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 762,000 in Yujin Robot Co on November 3, 2024 and sell it today you would earn a total of 48,000 from holding Yujin Robot Co or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwoo Farm To vs. Yujin Robot Co
Performance |
| Timeline |
| Dongwoo Farm To |
| Yujin Robot |
Dongwoo Farm and Yujin Robot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoo Farm and Yujin Robot
The main advantage of trading using opposite Dongwoo Farm and Yujin Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoo Farm 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.| Dongwoo Farm vs. Ssangyong Information Communication | Dongwoo Farm vs. Nice Information Telecommunication | Dongwoo Farm vs. Inzi Display CoLtd | Dongwoo Farm vs. Daishin Information Communications |
| Yujin Robot vs. Sewoon Medical Co | Yujin Robot vs. Seoam Machinery Industry | Yujin Robot vs. Seohee Construction Co | Yujin Robot vs. ENERGYMACHINERY KOREA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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