Correlation Between YG Entertainment and Young Poong
Can any of the company-specific risk be diversified away by investing in both YG Entertainment 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 YG Entertainment and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YG Entertainment and Young Poong Corp, you can compare the effects of market volatilities on YG Entertainment 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 YG Entertainment with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of YG Entertainment and Young Poong.
Diversification Opportunities for YG Entertainment and Young Poong
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 122870 and Young is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding YG Entertainment and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and YG Entertainment 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 YG Entertainment 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 Corp has no effect on the direction of YG Entertainment i.e., YG Entertainment and Young Poong go up and down completely randomly.
Pair Corralation between YG Entertainment and Young Poong
Assuming the 90 days trading horizon YG Entertainment is expected to generate 0.52 times more return on investment than Young Poong. However, YG Entertainment is 1.92 times less risky than Young Poong. It trades about 0.04 of its potential returns per unit of risk. Young Poong Corp is currently generating about 0.01 per unit of risk. If you would invest 4,250,000 in YG Entertainment on November 7, 2024 and sell it today you would earn a total of 735,000 from holding YG Entertainment or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YG Entertainment vs. Young Poong Corp
Performance |
| Timeline |
| YG Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Young Poong Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
YG Entertainment and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YG Entertainment and Young Poong
The main advantage of trading using opposite YG Entertainment and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YG Entertainment 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.| YG Entertainment vs. Samsung Life Insurance | YG Entertainment vs. SK Chemicals Co | YG Entertainment vs. Miwon Chemicals Co | YG Entertainment vs. Kg Chemical |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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