Correlation Between SS TECH and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both SS TECH and Youngsin Metal 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 SS TECH and Youngsin Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and Youngsin Metal Industrial, you can compare the effects of market volatilities on SS TECH and Youngsin Metal 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 SS TECH with a short position of Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and Youngsin Metal.
Diversification Opportunities for SS TECH and Youngsin Metal
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 101490 and Youngsin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial and SS TECH 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 SS TECH are associated (or correlated) with Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of SS TECH i.e., SS TECH and Youngsin Metal go up and down completely randomly.
Pair Corralation between SS TECH and Youngsin Metal
Assuming the 90 days trading horizon SS TECH is expected to generate 1.87 times more return on investment than Youngsin Metal. However, SS TECH is 1.87 times more volatile than Youngsin Metal Industrial. It trades about 0.37 of its potential returns per unit of risk. Youngsin Metal Industrial is currently generating about -0.29 per unit of risk. If you would invest 2,560,000 in SS TECH on October 30, 2024 and sell it today you would earn a total of 530,000 from holding SS TECH or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS TECH vs. Youngsin Metal Industrial
Performance |
| Timeline |
| SS TECH |
| Youngsin Metal Industrial |
SS TECH and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and Youngsin Metal
The main advantage of trading using opposite SS TECH and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| SS TECH vs. Samsung Electronics Co | SS TECH vs. Samsung Electronics Co | SS TECH vs. SK Hynix | SS TECH vs. HMM Co |
| Youngsin Metal vs. Daejoo Electronic Materials | Youngsin Metal vs. Top Material Co | Youngsin Metal vs. TOPMATERIAL LTD | Youngsin Metal vs. Hyundai Engineering Plastics |
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.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |