Correlation Between Yonyu Plastics and Green World
Can any of the company-specific risk be diversified away by investing in both Yonyu Plastics and Green World 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 Yonyu Plastics and Green World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yonyu Plastics Co and Green World Fintech, you can compare the effects of market volatilities on Yonyu Plastics and Green World 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 Yonyu Plastics with a short position of Green World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyu Plastics and Green World.
Diversification Opportunities for Yonyu Plastics and Green World
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yonyu and Green is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Yonyu Plastics Co and Green World Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green World Fintech and Yonyu Plastics 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 Yonyu Plastics Co are associated (or correlated) with Green World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green World Fintech has no effect on the direction of Yonyu Plastics i.e., Yonyu Plastics and Green World go up and down completely randomly.
Pair Corralation between Yonyu Plastics and Green World
Assuming the 90 days trading horizon Yonyu Plastics Co is expected to generate 0.19 times more return on investment than Green World. However, Yonyu Plastics Co is 5.26 times less risky than Green World. It trades about -0.41 of its potential returns per unit of risk. Green World Fintech is currently generating about -0.11 per unit of risk. If you would invest 2,525 in Yonyu Plastics Co on October 14, 2024 and sell it today you would lose (90.00) from holding Yonyu Plastics Co or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyu Plastics Co vs. Green World Fintech
Performance |
| Timeline |
| Yonyu Plastics |
| Green World Fintech |
Yonyu Plastics and Green World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyu Plastics and Green World
The main advantage of trading using opposite Yonyu Plastics and Green World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyu Plastics position performs unexpectedly, Green World 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 Green World will offset losses from the drop in Green World's long position.| Yonyu Plastics vs. Ocean Plastics Co | Yonyu Plastics vs. San Fang Chemical | Yonyu Plastics vs. Universal | Yonyu Plastics vs. Asia Polymer Corp |
| Green World vs. Dimerco Data System | Green World vs. Yonyu Plastics Co | Green World vs. BenQ Materials Corp | Green World vs. Hwa Fong Rubber |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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