Correlation Between BNK Financial and Yura Tech
Can any of the company-specific risk be diversified away by investing in both BNK Financial 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 BNK Financial and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNK Financial Group and Yura Tech Co, you can compare the effects of market volatilities on BNK Financial 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 BNK Financial with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNK Financial and Yura Tech.
Diversification Opportunities for BNK Financial and Yura Tech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BNK and Yura is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BNK Financial Group and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and BNK Financial 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 BNK Financial Group 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 BNK Financial i.e., BNK Financial and Yura Tech go up and down completely randomly.
Pair Corralation between BNK Financial and Yura Tech
Assuming the 90 days trading horizon BNK Financial Group is expected to generate 0.72 times more return on investment than Yura Tech. However, BNK Financial Group is 1.39 times less risky than Yura Tech. It trades about 0.11 of its potential returns per unit of risk. Yura Tech Co is currently generating about 0.02 per unit of risk. If you would invest 653,035 in BNK Financial Group on November 28, 2024 and sell it today you would earn a total of 513,965 from holding BNK Financial Group or generate 78.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNK Financial Group vs. Yura Tech Co
Performance |
| Timeline |
| BNK Financial Group |
| Yura Tech |
BNK Financial and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNK Financial and Yura Tech
The main advantage of trading using opposite BNK Financial and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNK Financial 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.| BNK Financial vs. Korean Drug Co | BNK Financial vs. Sam Yang Foods | BNK Financial vs. Green Cross Medical | BNK Financial vs. DB Insurance Co |
| Yura Tech vs. FNSTech Co | Yura Tech vs. Samyang Foods Co | Yura Tech vs. ADTechnology CoLtd | Yura Tech vs. Orbitech Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |