Correlation Between TRON and Young Poong
Can any of the company-specific risk be diversified away by investing in both TRON 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 TRON and Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRON and Young Poong Corp, you can compare the effects of market volatilities on TRON 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 TRON with a short position of Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and Young Poong.
Diversification Opportunities for TRON and Young Poong
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TRON and Young is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding TRON and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and TRON 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 TRON 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 Corp has no effect on the direction of TRON i.e., TRON and Young Poong go up and down completely randomly.
Pair Corralation between TRON and Young Poong
Assuming the 90 days trading horizon TRON is expected to under-perform the Young Poong. In addition to that, TRON is 2.64 times more volatile than Young Poong Corp. It trades about -0.17 of its total potential returns per unit of risk. Young Poong Corp is currently generating about 0.06 per unit of volatility. If you would invest 38,481,900 in Young Poong Corp on October 14, 2024 and sell it today you would earn a total of 518,100 from holding Young Poong Corp or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
TRON vs. Young Poong Corp
Performance |
| Timeline |
| TRON |
| Young Poong Corp |
TRON and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRON and Young Poong
The main advantage of trading using opposite TRON and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON 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.The idea behind TRON and Young Poong Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Young Poong vs. Nable Communications | Young Poong vs. Daejung Chemicals Metals | Young Poong vs. Korea Information Communications | Young Poong vs. Automobile Pc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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