Correlation Between Youngchang Chemical and Young Poong
Can any of the company-specific risk be diversified away by investing in both Youngchang Chemical and Young Poong 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 Young Poong 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 Young Poong Precision, you can compare the effects of market volatilities on Youngchang Chemical and Young Poong 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 Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngchang Chemical and Young Poong.
Diversification Opportunities for Youngchang Chemical and Young Poong
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Youngchang and Young is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Youngchang Chemical Co and Young Poong Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Precision 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 Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Precision has no effect on the direction of Youngchang Chemical i.e., Youngchang Chemical and Young Poong go up and down completely randomly.
Pair Corralation between Youngchang Chemical and Young Poong
Assuming the 90 days trading horizon Youngchang Chemical Co is expected to generate 1.22 times more return on investment than Young Poong. However, Youngchang Chemical is 1.22 times more volatile than Young Poong Precision. It trades about 0.05 of its potential returns per unit of risk. Young Poong Precision is currently generating about 0.02 per unit of risk. If you would invest 1,238,869 in Youngchang Chemical Co on January 23, 2025 and sell it today you would earn a total of 986,131 from holding Youngchang Chemical Co or generate 79.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Youngchang Chemical Co vs. Young Poong Precision
Performance |
| Timeline |
| Youngchang Chemical |
| Young Poong Precision |
Youngchang Chemical and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngchang Chemical and Young Poong
The main advantage of trading using opposite Youngchang Chemical and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngchang Chemical position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Youngchang Chemical vs. Hanjoo Light Metal | Youngchang Chemical vs. Anam Electronics Co | Youngchang Chemical vs. Samsung Electronics Co | Youngchang Chemical vs. Samwha Electronics Co |
| Young Poong vs. Seoam Machinery Industry | Young Poong vs. Busan Industrial Co | Young Poong vs. Finebesteel | Young Poong vs. Shinhan Inverse WTI |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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