Correlation Between TTET Union and Yulon Finance
Can any of the company-specific risk be diversified away by investing in both TTET Union and Yulon Finance 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 TTET Union and Yulon Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTET Union Corp and Yulon Finance Corp, you can compare the effects of market volatilities on TTET Union and Yulon Finance 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 TTET Union with a short position of Yulon Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTET Union and Yulon Finance.
Diversification Opportunities for TTET Union and Yulon Finance
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TTET and Yulon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding TTET Union Corp and Yulon Finance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Finance Corp and TTET Union 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 TTET Union Corp are associated (or correlated) with Yulon Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Finance Corp has no effect on the direction of TTET Union i.e., TTET Union and Yulon Finance go up and down completely randomly.
Pair Corralation between TTET Union and Yulon Finance
Assuming the 90 days trading horizon TTET Union Corp is expected to generate 0.28 times more return on investment than Yulon Finance. However, TTET Union Corp is 3.54 times less risky than Yulon Finance. It trades about -0.4 of its potential returns per unit of risk. Yulon Finance Corp is currently generating about -0.29 per unit of risk. If you would invest 15,500 in TTET Union Corp on August 24, 2024 and sell it today you would lose (950.00) from holding TTET Union Corp or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTET Union Corp vs. Yulon Finance Corp
Performance |
| Timeline |
| TTET Union Corp |
| Yulon Finance Corp |
TTET Union and Yulon Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTET Union and Yulon Finance
The main advantage of trading using opposite TTET Union and Yulon Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTET Union position performs unexpectedly, Yulon Finance 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 Yulon Finance will offset losses from the drop in Yulon Finance's long position.| TTET Union vs. Charoen Pokphand Enterprise | TTET Union vs. Standard Foods Corp | TTET Union vs. Uni President Enterprises Corp | TTET Union vs. Great Wall Enterprise |
| Yulon Finance vs. Fubon Financial Holding | Yulon Finance vs. Cathay Financial Holding | Yulon Finance vs. ESUN Financial Holding |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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