Correlation Between Chin Yang and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Chin Yang and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Chin Yang and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chin Yang and Inzi Display.
Diversification Opportunities for Chin Yang and Inzi Display
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chin and Inzi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chin Yang Chemical and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Chin Yang i.e., Chin Yang and Inzi Display go up and down completely randomly.
Pair Corralation between Chin Yang and Inzi Display
Assuming the 90 days trading horizon Chin Yang Chemical is expected to generate 2.0 times more return on investment than Inzi Display. However, Chin Yang is 2.0 times more volatile than Inzi Display CoLtd. It trades about 0.02 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.34 per unit of risk. If you would invest 263,500 in Chin Yang Chemical on August 26, 2024 and sell it today you would earn a total of 1,000.00 from holding Chin Yang Chemical or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chin Yang Chemical vs. Inzi Display CoLtd
Performance |
| Timeline |
| Chin Yang Chemical |
| Inzi Display CoLtd |
Chin Yang and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chin Yang and Inzi Display
The main advantage of trading using opposite Chin Yang and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chin Yang position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Chin Yang vs. AptaBio Therapeutics | Chin Yang vs. Daewoo SBI SPAC | Chin Yang vs. Dream Security co | Chin Yang vs. Microfriend |
| Inzi Display vs. Sung Bo Chemicals | Inzi Display vs. Kyung In Synthetic Corp | Inzi Display vs. Chin Yang Chemical | Inzi Display vs. LG Chemicals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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