Correlation Between Chin Yang and Youl Chon
Can any of the company-specific risk be diversified away by investing in both Chin Yang and Youl Chon 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 Chin Yang and Youl Chon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chin Yang Chemical and Youl Chon Chemical, you can compare the effects of market volatilities on Chin Yang and Youl Chon 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 Chin Yang with a short position of Youl Chon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chin Yang and Youl Chon.
Diversification Opportunities for Chin Yang and Youl Chon
Good diversification
The 3 months correlation between Chin and Youl is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chin Yang Chemical and Youl Chon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youl Chon Chemical and Chin Yang 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 Chin Yang Chemical are associated (or correlated) with Youl Chon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youl Chon Chemical has no effect on the direction of Chin Yang i.e., Chin Yang and Youl Chon go up and down completely randomly.
Pair Corralation between Chin Yang and Youl Chon
Assuming the 90 days trading horizon Chin Yang Chemical is expected to generate 0.49 times more return on investment than Youl Chon. However, Chin Yang Chemical is 2.03 times less risky than Youl Chon. It trades about -0.01 of its potential returns per unit of risk. Youl Chon Chemical is currently generating about -0.02 per unit of risk. If you would invest 292,489 in Chin Yang Chemical on August 25, 2024 and sell it today you would lose (27,989) from holding Chin Yang Chemical or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chin Yang Chemical vs. Youl Chon Chemical
Performance |
| Timeline |
| Chin Yang Chemical |
| Youl Chon Chemical |
Chin Yang and Youl Chon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chin Yang and Youl Chon
The main advantage of trading using opposite Chin Yang and Youl Chon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chin Yang position performs unexpectedly, Youl Chon 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 Youl Chon will offset losses from the drop in Youl Chon's long position.| Chin Yang vs. AptaBio Therapeutics | Chin Yang vs. Daewoo SBI SPAC | Chin Yang vs. Dream Security co | Chin Yang vs. Microfriend |
| Youl Chon vs. AptaBio Therapeutics | Youl Chon vs. Daewoo SBI SPAC | Youl Chon vs. Dream Security co | Youl Chon vs. Microfriend |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |