Correlation Between Yi Jinn and Cypress Technology
Can any of the company-specific risk be diversified away by investing in both Yi Jinn and Cypress Technology 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 Yi Jinn and Cypress Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yi Jinn Industrial and Cypress Technology Co, you can compare the effects of market volatilities on Yi Jinn and Cypress Technology 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 Yi Jinn with a short position of Cypress Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yi Jinn and Cypress Technology.
Diversification Opportunities for Yi Jinn and Cypress Technology
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 1457 and Cypress is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Yi Jinn Industrial and Cypress Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cypress Technology and Yi Jinn 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 Yi Jinn Industrial are associated (or correlated) with Cypress Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cypress Technology has no effect on the direction of Yi Jinn i.e., Yi Jinn and Cypress Technology go up and down completely randomly.
Pair Corralation between Yi Jinn and Cypress Technology
Assuming the 90 days trading horizon Yi Jinn Industrial is expected to generate 0.94 times more return on investment than Cypress Technology. However, Yi Jinn Industrial is 1.06 times less risky than Cypress Technology. It trades about -0.02 of its potential returns per unit of risk. Cypress Technology Co is currently generating about -0.06 per unit of risk. If you would invest 2,075 in Yi Jinn Industrial on October 26, 2024 and sell it today you would lose (85.00) from holding Yi Jinn Industrial or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yi Jinn Industrial vs. Cypress Technology Co
Performance |
| Timeline |
| Yi Jinn Industrial |
| Cypress Technology |
Yi Jinn and Cypress Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yi Jinn and Cypress Technology
The main advantage of trading using opposite Yi Jinn and Cypress Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yi Jinn position performs unexpectedly, Cypress Technology 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 Cypress Technology will offset losses from the drop in Cypress Technology's long position.| Yi Jinn vs. Tong Yang Industry | Yi Jinn vs. Ta Yih Industrial | Yi Jinn vs. Basso Industry Corp | Yi Jinn vs. China Motor Corp |
| Cypress Technology vs. Prime Oil Chemical | Cypress Technology vs. Acelon Chemicals Fiber | Cypress Technology vs. Thye Ming Industrial | Cypress Technology vs. Yi Jinn Industrial |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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