Correlation Between YG Entertainment and Sinil Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both YG Entertainment and Sinil Pharmaceutical 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 Sinil Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YG Entertainment and Sinil Pharmaceutical Co, you can compare the effects of market volatilities on YG Entertainment and Sinil Pharmaceutical 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 Sinil Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of YG Entertainment and Sinil Pharmaceutical.
Diversification Opportunities for YG Entertainment and Sinil Pharmaceutical
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 122870 and Sinil is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding YG Entertainment and Sinil Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinil Pharmaceutical 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 Sinil Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinil Pharmaceutical has no effect on the direction of YG Entertainment i.e., YG Entertainment and Sinil Pharmaceutical go up and down completely randomly.
Pair Corralation between YG Entertainment and Sinil Pharmaceutical
Assuming the 90 days trading horizon YG Entertainment is expected to generate 1.69 times more return on investment than Sinil Pharmaceutical. However, YG Entertainment is 1.69 times more volatile than Sinil Pharmaceutical Co. It trades about 0.13 of its potential returns per unit of risk. Sinil Pharmaceutical Co is currently generating about 0.02 per unit of risk. If you would invest 4,500,000 in YG Entertainment on September 15, 2024 and sell it today you would earn a total of 325,000 from holding YG Entertainment or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YG Entertainment vs. Sinil Pharmaceutical Co
Performance |
| Timeline |
| YG Entertainment |
| Sinil Pharmaceutical |
YG Entertainment and Sinil Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YG Entertainment and Sinil Pharmaceutical
The main advantage of trading using opposite YG Entertainment and Sinil Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YG Entertainment position performs unexpectedly, Sinil Pharmaceutical 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 Sinil Pharmaceutical will offset losses from the drop in Sinil Pharmaceutical's long position.| YG Entertainment vs. Samsung Electronics Co | YG Entertainment vs. Samsung Electronics Co | YG Entertainment vs. LG Energy Solution | YG Entertainment vs. SK Hynix |
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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 Stocks Directory module to find actively traded stocks across global markets.
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