Correlation Between Solution Advanced and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Solution Advanced 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 Solution Advanced and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solution Advanced Technology and Yura Tech Co, you can compare the effects of market volatilities on Solution Advanced 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 Solution Advanced with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solution Advanced and Yura Tech.
Diversification Opportunities for Solution Advanced and Yura Tech
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solution and Yura is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Solution Advanced Technology and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and Solution Advanced 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 Solution Advanced Technology 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 Solution Advanced i.e., Solution Advanced and Yura Tech go up and down completely randomly.
Pair Corralation between Solution Advanced and Yura Tech
Assuming the 90 days trading horizon Solution Advanced Technology is expected to generate 1.89 times more return on investment than Yura Tech. However, Solution Advanced is 1.89 times more volatile than Yura Tech Co. It trades about 0.23 of its potential returns per unit of risk. Yura Tech Co is currently generating about 0.14 per unit of risk. If you would invest 130,900 in Solution Advanced Technology on November 1, 2024 and sell it today you would earn a total of 18,900 from holding Solution Advanced Technology or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solution Advanced Technology vs. Yura Tech Co
Performance |
| Timeline |
| Solution Advanced |
| Yura Tech |
Solution Advanced and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solution Advanced and Yura Tech
The main advantage of trading using opposite Solution Advanced and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solution Advanced 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.| Solution Advanced vs. Ssangyong Information Communication | Solution Advanced vs. Nice Information Telecommunication | Solution Advanced vs. CG Hi Tech | Solution Advanced vs. Sangsin Energy Display |
| Yura Tech vs. Hwangkum Steel Technology | Yura Tech vs. Cots Technology Co | Yura Tech vs. Aprogen Healthcare Games | Yura Tech vs. Lotte Chilsung Beverage |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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