Correlation Between Chyang Sheng and Yi Jinn
Can any of the company-specific risk be diversified away by investing in both Chyang Sheng and Yi Jinn 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 Chyang Sheng and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chyang Sheng Dyeing and Yi Jinn Industrial, you can compare the effects of market volatilities on Chyang Sheng and Yi Jinn 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 Chyang Sheng with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chyang Sheng and Yi Jinn.
Diversification Opportunities for Chyang Sheng and Yi Jinn
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chyang and 1457 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chyang Sheng Dyeing and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and Chyang Sheng 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 Chyang Sheng Dyeing are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of Chyang Sheng i.e., Chyang Sheng and Yi Jinn go up and down completely randomly.
Pair Corralation between Chyang Sheng and Yi Jinn
Assuming the 90 days trading horizon Chyang Sheng Dyeing is expected to generate 1.55 times more return on investment than Yi Jinn. However, Chyang Sheng is 1.55 times more volatile than Yi Jinn Industrial. It trades about 0.08 of its potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.06 per unit of risk. If you would invest 2,445 in Chyang Sheng Dyeing on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Chyang Sheng Dyeing or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chyang Sheng Dyeing vs. Yi Jinn Industrial
Performance |
| Timeline |
| Chyang Sheng Dyeing |
| Yi Jinn Industrial |
Chyang Sheng and Yi Jinn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chyang Sheng and Yi Jinn
The main advantage of trading using opposite Chyang Sheng and Yi Jinn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chyang Sheng position performs unexpectedly, Yi Jinn 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 Yi Jinn will offset losses from the drop in Yi Jinn's long position.| Chyang Sheng vs. Chaintech Technology Corp | Chyang Sheng vs. Avision | Chyang Sheng vs. Clevo Co | Chyang Sheng vs. Elitegroup Computer Systems |
| Yi Jinn vs. Chaintech Technology Corp | Yi Jinn vs. Avision | Yi Jinn vs. Clevo Co | Yi Jinn vs. Elitegroup Computer Systems |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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