Correlation Between YCC Parts and Asia Plastic
Can any of the company-specific risk be diversified away by investing in both YCC Parts and Asia Plastic 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 YCC Parts and Asia Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YCC Parts MFG and Asia Plastic Recycling, you can compare the effects of market volatilities on YCC Parts and Asia Plastic 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 YCC Parts with a short position of Asia Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of YCC Parts and Asia Plastic.
Diversification Opportunities for YCC Parts and Asia Plastic
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YCC and Asia is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding YCC Parts MFG and Asia Plastic Recycling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Plastic Recycling and YCC Parts 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 YCC Parts MFG are associated (or correlated) with Asia Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Plastic Recycling has no effect on the direction of YCC Parts i.e., YCC Parts and Asia Plastic go up and down completely randomly.
Pair Corralation between YCC Parts and Asia Plastic
Assuming the 90 days trading horizon YCC Parts MFG is expected to generate 1.27 times more return on investment than Asia Plastic. However, YCC Parts is 1.27 times more volatile than Asia Plastic Recycling. It trades about 0.03 of its potential returns per unit of risk. Asia Plastic Recycling is currently generating about 0.0 per unit of risk. If you would invest 4,295 in YCC Parts MFG on September 4, 2024 and sell it today you would earn a total of 1,075 from holding YCC Parts MFG or generate 25.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YCC Parts MFG vs. Asia Plastic Recycling
Performance |
| Timeline |
| YCC Parts MFG |
| Asia Plastic Recycling |
YCC Parts and Asia Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YCC Parts and Asia Plastic
The main advantage of trading using opposite YCC Parts and Asia Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YCC Parts position performs unexpectedly, Asia Plastic 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 Asia Plastic will offset losses from the drop in Asia Plastic's long position.| YCC Parts vs. Tainan Spinning Co | YCC Parts vs. Chia Her Industrial | YCC Parts vs. WiseChip Semiconductor | YCC Parts vs. Novatek Microelectronics Corp |
| Asia Plastic vs. Victory New Materials | Asia Plastic vs. Hunya Foods Co | Asia Plastic vs. YCC Parts MFG | Asia Plastic vs. Kwong Fong Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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