Correlation Between Grand Korea and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Grand Korea 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 Grand Korea and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and Yura Tech Co, you can compare the effects of market volatilities on Grand Korea 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 Grand Korea with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Yura Tech.
Diversification Opportunities for Grand Korea and Yura Tech
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grand and Yura is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and Grand Korea 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 Grand Korea Leisure 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 Grand Korea i.e., Grand Korea and Yura Tech go up and down completely randomly.
Pair Corralation between Grand Korea and Yura Tech
Assuming the 90 days trading horizon Grand Korea is expected to generate 2.11 times less return on investment than Yura Tech. In addition to that, Grand Korea is 1.11 times more volatile than Yura Tech Co. It trades about 0.03 of its total potential returns per unit of risk. Yura Tech Co is currently generating about 0.07 per unit of volatility. If you would invest 685,000 in Yura Tech Co on September 13, 2024 and sell it today you would earn a total of 37,000 from holding Yura Tech Co or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Yura Tech Co
Performance |
| Timeline |
| Grand Korea Leisure |
| Yura Tech |
Grand Korea and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Yura Tech
The main advantage of trading using opposite Grand Korea and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea 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.| Grand Korea vs. Lion Chemtech Co | Grand Korea vs. Eagle Veterinary Technology | Grand Korea vs. Inzi Display CoLtd | Grand Korea vs. Nice Information Telecommunication |
| Yura Tech vs. Daou Data Corp | Yura Tech vs. Solution Advanced Technology | Yura Tech vs. Busan Industrial Co | Yura Tech vs. Busan Ind |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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