Correlation Between Tong Yang and Poya International
Can any of the company-specific risk be diversified away by investing in both Tong Yang and Poya International 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 Poya International 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 Poya International Co, you can compare the effects of market volatilities on Tong Yang and Poya International 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 Poya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tong Yang and Poya International.
Diversification Opportunities for Tong Yang and Poya International
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tong and Poya is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tong Yang Industry and Poya International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poya International 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 Poya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poya International has no effect on the direction of Tong Yang i.e., Tong Yang and Poya International go up and down completely randomly.
Pair Corralation between Tong Yang and Poya International
Assuming the 90 days trading horizon Tong Yang Industry is expected to under-perform the Poya International. In addition to that, Tong Yang is 2.52 times more volatile than Poya International Co. It trades about -0.12 of its total potential returns per unit of risk. Poya International Co is currently generating about -0.21 per unit of volatility. If you would invest 50,100 in Poya International Co on October 26, 2024 and sell it today you would lose (1,700) from holding Poya International Co or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tong Yang Industry vs. Poya International Co
Performance |
| Timeline |
| Tong Yang Industry |
| Poya International |
Tong Yang and Poya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tong Yang and Poya International
The main advantage of trading using opposite Tong Yang and Poya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tong Yang position performs unexpectedly, Poya International 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 Poya International will offset losses from the drop in Poya International'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 |
| Poya International vs. Tong Yang Industry | Poya International vs. Ta Yih Industrial | Poya International vs. Basso Industry Corp | Poya International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |