Correlation Between YG Entertainment and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both YG Entertainment and Myoung Shin 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 Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YG Entertainment and Myoung Shin Industrial, you can compare the effects of market volatilities on YG Entertainment and Myoung Shin 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 Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of YG Entertainment and Myoung Shin.
Diversification Opportunities for YG Entertainment and Myoung Shin
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 122870 and Myoung is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding YG Entertainment and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial 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 Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of YG Entertainment i.e., YG Entertainment and Myoung Shin go up and down completely randomly.
Pair Corralation between YG Entertainment and Myoung Shin
Assuming the 90 days trading horizon YG Entertainment is expected to generate 0.79 times more return on investment than Myoung Shin. However, YG Entertainment is 1.27 times less risky than Myoung Shin. It trades about 0.14 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.09 per unit of risk. If you would invest 3,725,000 in YG Entertainment on September 28, 2024 and sell it today you would earn a total of 850,000 from holding YG Entertainment or generate 22.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
YG Entertainment vs. Myoung Shin Industrial
Performance |
| Timeline |
| YG Entertainment |
| Myoung Shin Industrial |
YG Entertainment and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YG Entertainment and Myoung Shin
The main advantage of trading using opposite YG Entertainment and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YG Entertainment position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| YG Entertainment vs. Samsung Electronics Co | YG Entertainment vs. Samsung Electronics Co | YG Entertainment vs. KB Financial Group | YG Entertainment vs. Shinhan Financial Group |
| Myoung Shin vs. Gyeongnam Steel Co | Myoung Shin vs. YG Entertainment | Myoung Shin vs. SM Entertainment Co | Myoung Shin vs. Organic Tea Cosmetics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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