Correlation Between Tong Yang and Yi Jinn
Can any of the company-specific risk be diversified away by investing in both Tong Yang and Yi Jinn 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 Tong Yang and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tong Yang Industry and Yi Jinn Industrial, you can compare the effects of market volatilities on Tong Yang and Yi Jinn 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 Tong Yang with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tong Yang and Yi Jinn.
Diversification Opportunities for Tong Yang and Yi Jinn
Weak diversification
The 3 months correlation between Tong and 1457 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tong Yang Industry and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and Tong 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 Tong Yang Industry are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of Tong Yang i.e., Tong Yang and Yi Jinn go up and down completely randomly.
Pair Corralation between Tong Yang and Yi Jinn
Assuming the 90 days trading horizon Tong Yang Industry is expected to under-perform the Yi Jinn. In addition to that, Tong Yang is 1.88 times more volatile than Yi Jinn Industrial. It trades about -0.02 of its total potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.0 per unit of volatility. If you would invest 1,995 in Yi Jinn Industrial on October 26, 2024 and sell it today you would lose (5.00) from holding Yi Jinn Industrial or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tong Yang Industry vs. Yi Jinn Industrial
Performance |
| Timeline |
| Tong Yang Industry |
| Yi Jinn Industrial |
Tong Yang and Yi Jinn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tong Yang and Yi Jinn
The main advantage of trading using opposite Tong Yang and Yi Jinn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tong Yang position performs unexpectedly, Yi Jinn 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 Yi Jinn will offset losses from the drop in Yi Jinn's long position.| Tong Yang vs. TYC Brother Industrial | Tong Yang vs. Hota Industrial Mfg | Tong Yang vs. Yulon Motor Co | Tong Yang vs. Far Eastern New |
| Yi Jinn vs. Tong Yang Industry | Yi Jinn vs. Ta Yih Industrial | Yi Jinn vs. Basso Industry Corp | Yi Jinn vs. China Motor Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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