Correlation Between CS BEARING and Young Poong
Can any of the company-specific risk be diversified away by investing in both CS BEARING 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 CS BEARING and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS BEARING CoLtd and Young Poong Precision, you can compare the effects of market volatilities on CS BEARING 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 CS BEARING with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS BEARING and Young Poong.
Diversification Opportunities for CS BEARING and Young Poong
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 297090 and Young is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CS BEARING CoLtd and Young Poong Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Precision and CS BEARING 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 CS BEARING CoLtd 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 Precision has no effect on the direction of CS BEARING i.e., CS BEARING and Young Poong go up and down completely randomly.
Pair Corralation between CS BEARING and Young Poong
Assuming the 90 days trading horizon CS BEARING CoLtd is expected to under-perform the Young Poong. But the stock apears to be less risky and, when comparing its historical volatility, CS BEARING CoLtd is 1.71 times less risky than Young Poong. The stock trades about -0.09 of its potential returns per unit of risk. The Young Poong Precision is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,232,000 in Young Poong Precision on August 29, 2024 and sell it today you would earn a total of 235,000 from holding Young Poong Precision or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CS BEARING CoLtd vs. Young Poong Precision
Performance |
| Timeline |
| CS BEARING CoLtd |
| Young Poong Precision |
CS BEARING and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS BEARING and Young Poong
The main advantage of trading using opposite CS BEARING and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS BEARING 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.| CS BEARING vs. Shinsegae Information Communication | CS BEARING vs. Daishin Information Communications | CS BEARING vs. LG Display Co | CS BEARING vs. Display Tech Co |
| Young Poong vs. CS BEARING CoLtd | Young Poong vs. DAEMO Engineering Co | Young Poong vs. Seoam Machinery Industry | Young Poong vs. Booster 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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