Correlation Between Y Optics and Automobile
Can any of the company-specific risk be diversified away by investing in both Y Optics and Automobile 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 Y Optics and Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Y Optics Manufacture Co and Automobile Pc, you can compare the effects of market volatilities on Y Optics and Automobile 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 Y Optics with a short position of Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Y Optics and Automobile.
Diversification Opportunities for Y Optics and Automobile
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 066430 and Automobile is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Y Optics Manufacture Co and Automobile Pc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automobile Pc and Y Optics 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 Y Optics Manufacture Co are associated (or correlated) with Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automobile Pc has no effect on the direction of Y Optics i.e., Y Optics and Automobile go up and down completely randomly.
Pair Corralation between Y Optics and Automobile
Assuming the 90 days trading horizon Y Optics Manufacture Co is expected to generate 0.63 times more return on investment than Automobile. However, Y Optics Manufacture Co is 1.6 times less risky than Automobile. It trades about -0.06 of its potential returns per unit of risk. Automobile Pc is currently generating about -0.17 per unit of risk. If you would invest 54,000 in Y Optics Manufacture Co on October 21, 2024 and sell it today you would lose (1,000.00) from holding Y Optics Manufacture Co or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Y Optics Manufacture Co vs. Automobile Pc
Performance |
| Timeline |
| Y Optics Manufacture |
| Automobile Pc |
Y Optics and Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Y Optics and Automobile
The main advantage of trading using opposite Y Optics and Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Y Optics position performs unexpectedly, Automobile 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 Automobile will offset losses from the drop in Automobile's long position.| Y Optics vs. CG Hi Tech | Y Optics vs. Lotte Data Communication | Y Optics vs. InnoTherapy | Y Optics vs. GS Retail Co |
| Automobile vs. Shinsegae Food | Automobile vs. Coloray International Investment | Automobile vs. Haitai Confectionery Foods | Automobile vs. Nh Investment And |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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