Correlation Between RaemongRaein and Y Optics
Can any of the company-specific risk be diversified away by investing in both RaemongRaein and Y Optics 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 RaemongRaein and Y Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RaemongRaein Co and Y Optics Manufacture Co, you can compare the effects of market volatilities on RaemongRaein and Y Optics 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 RaemongRaein with a short position of Y Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of RaemongRaein and Y Optics.
Diversification Opportunities for RaemongRaein and Y Optics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RaemongRaein and 066430 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding RaemongRaein Co and Y Optics Manufacture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y Optics Manufacture and RaemongRaein 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 RaemongRaein Co are associated (or correlated) with Y Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y Optics Manufacture has no effect on the direction of RaemongRaein i.e., RaemongRaein and Y Optics go up and down completely randomly.
Pair Corralation between RaemongRaein and Y Optics
Assuming the 90 days trading horizon RaemongRaein Co is expected to generate 1.65 times more return on investment than Y Optics. However, RaemongRaein is 1.65 times more volatile than Y Optics Manufacture Co. It trades about 0.0 of its potential returns per unit of risk. Y Optics Manufacture Co is currently generating about -0.06 per unit of risk. If you would invest 2,475,000 in RaemongRaein Co on September 4, 2024 and sell it today you would lose (717,000) from holding RaemongRaein Co or give up 28.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RaemongRaein Co vs. Y Optics Manufacture Co
Performance |
| Timeline |
| RaemongRaein |
| Y Optics Manufacture |
RaemongRaein and Y Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RaemongRaein and Y Optics
The main advantage of trading using opposite RaemongRaein and Y Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RaemongRaein position performs unexpectedly, Y Optics 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 Y Optics will offset losses from the drop in Y Optics' long position.| RaemongRaein vs. Jeil Steel Mfg | RaemongRaein vs. Dongbu Steel Co | RaemongRaein vs. Dong A Steel Technology | RaemongRaein vs. Hankuk Steel Wire |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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