Correlation Between Yi Jinn and Allied Industrial
Can any of the company-specific risk be diversified away by investing in both Yi Jinn and Allied Industrial 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 Allied Industrial 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 Allied Industrial, you can compare the effects of market volatilities on Yi Jinn and Allied Industrial 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 Allied Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yi Jinn and Allied Industrial.
Diversification Opportunities for Yi Jinn and Allied Industrial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 1457 and Allied is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Yi Jinn Industrial and Allied Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Industrial 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 Allied Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Industrial has no effect on the direction of Yi Jinn i.e., Yi Jinn and Allied Industrial go up and down completely randomly.
Pair Corralation between Yi Jinn and Allied Industrial
Assuming the 90 days trading horizon Yi Jinn Industrial is expected to generate 0.78 times more return on investment than Allied Industrial. However, Yi Jinn Industrial is 1.28 times less risky than Allied Industrial. It trades about 0.08 of its potential returns per unit of risk. Allied Industrial is currently generating about -0.19 per unit of risk. If you would invest 1,925 in Yi Jinn Industrial on October 23, 2024 and sell it today you would earn a total of 40.00 from holding Yi Jinn Industrial or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Yi Jinn Industrial vs. Allied Industrial
Performance |
| Timeline |
| Yi Jinn Industrial |
| Allied Industrial |
Yi Jinn and Allied Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yi Jinn and Allied Industrial
The main advantage of trading using opposite Yi Jinn and Allied Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yi Jinn position performs unexpectedly, Allied Industrial 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 Allied Industrial will offset losses from the drop in Allied Industrial's long position.| Yi Jinn vs. Zig Sheng Industrial | Yi Jinn vs. Hong Yi Fiber | Yi Jinn vs. Lealea Enterprise Co | Yi Jinn vs. Shinkong Synthetic Fiber |
| Allied Industrial vs. Nan Ya Plastics | Allied Industrial vs. China Petrochemical Development | Allied Industrial vs. Eternal Materials Co | Allied Industrial vs. TSRC 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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