Correlation Between Alton Sports and Wing Yip
Can any of the company-specific risk be diversified away by investing in both Alton Sports and Wing Yip 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 Alton Sports and Wing Yip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and Wing Yip Food, you can compare the effects of market volatilities on Alton Sports and Wing Yip 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 Alton Sports with a short position of Wing Yip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and Wing Yip.
Diversification Opportunities for Alton Sports and Wing Yip
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alton and Wing is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food and Alton Sports 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 Alton Sports CoLtd are associated (or correlated) with Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of Alton Sports i.e., Alton Sports and Wing Yip go up and down completely randomly.
Pair Corralation between Alton Sports and Wing Yip
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to under-perform the Wing Yip. But the stock apears to be less risky and, when comparing its historical volatility, Alton Sports CoLtd is 2.01 times less risky than Wing Yip. The stock trades about -0.08 of its potential returns per unit of risk. The Wing Yip Food is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 107,500 in Wing Yip Food on August 27, 2024 and sell it today you would earn a total of 130,500 from holding Wing Yip Food or generate 121.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. Wing Yip Food
Performance |
| Timeline |
| Alton Sports CoLtd |
| Wing Yip Food |
Alton Sports and Wing Yip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and Wing Yip
The main advantage of trading using opposite Alton Sports and Wing Yip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports position performs unexpectedly, Wing Yip 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 Wing Yip will offset losses from the drop in Wing Yip's long position.| Alton Sports vs. Busan Industrial Co | Alton Sports vs. Busan Ind | Alton Sports vs. Mirae Asset Daewoo | Alton Sports vs. UNISEM Co |
| Wing Yip vs. Alton Sports CoLtd | Wing Yip vs. Tamul Multimedia Co | Wing Yip vs. MEDIANA CoLtd | Wing Yip vs. T3 Entertainment Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |