Correlation Between Youngchang Chemical and Kyung In
Can any of the company-specific risk be diversified away by investing in both Youngchang Chemical and Kyung In 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 Youngchang Chemical and Kyung In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngchang Chemical Co and Kyung In Synthetic Corp, you can compare the effects of market volatilities on Youngchang Chemical and Kyung In 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 Youngchang Chemical with a short position of Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngchang Chemical and Kyung In.
Diversification Opportunities for Youngchang Chemical and Kyung In
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Youngchang and Kyung is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Youngchang Chemical Co and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic and Youngchang Chemical 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 Youngchang Chemical Co are associated (or correlated) with Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Youngchang Chemical i.e., Youngchang Chemical and Kyung In go up and down completely randomly.
Pair Corralation between Youngchang Chemical and Kyung In
Assuming the 90 days trading horizon Youngchang Chemical Co is expected to generate 5.14 times more return on investment than Kyung In. However, Youngchang Chemical is 5.14 times more volatile than Kyung In Synthetic Corp. It trades about 0.49 of its potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about 0.17 per unit of risk. If you would invest 1,306,000 in Youngchang Chemical Co on October 30, 2024 and sell it today you would earn a total of 849,000 from holding Youngchang Chemical Co or generate 65.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Youngchang Chemical Co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Youngchang Chemical |
| Kyung In Synthetic |
Youngchang Chemical and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngchang Chemical and Kyung In
The main advantage of trading using opposite Youngchang Chemical and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngchang Chemical position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| Youngchang Chemical vs. SBI Investment KOREA | Youngchang Chemical vs. Homecast CoLtd | Youngchang Chemical vs. DB Financial Investment | Youngchang Chemical vs. Coloray International Investment |
| Kyung In vs. Vissem Electronics Co | Kyung In vs. Sungmoon Electronics Co | Kyung In vs. Korea Electronic Certification | Kyung In vs. Union Materials Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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