Correlation Between Kaulin Mfg and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both Kaulin Mfg and Shieh Yih 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 Kaulin Mfg and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaulin Mfg and Shieh Yih Machinery, you can compare the effects of market volatilities on Kaulin Mfg and Shieh Yih 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 Kaulin Mfg with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaulin Mfg and Shieh Yih.
Diversification Opportunities for Kaulin Mfg and Shieh Yih
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kaulin and Shieh is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kaulin Mfg and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and Kaulin Mfg 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 Kaulin Mfg are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of Kaulin Mfg i.e., Kaulin Mfg and Shieh Yih go up and down completely randomly.
Pair Corralation between Kaulin Mfg and Shieh Yih
Assuming the 90 days trading horizon Kaulin Mfg is expected to generate 0.59 times more return on investment than Shieh Yih. However, Kaulin Mfg is 1.69 times less risky than Shieh Yih. It trades about -0.17 of its potential returns per unit of risk. Shieh Yih Machinery is currently generating about -0.36 per unit of risk. If you would invest 1,410 in Kaulin Mfg on October 22, 2024 and sell it today you would lose (70.00) from holding Kaulin Mfg or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaulin Mfg vs. Shieh Yih Machinery
Performance |
| Timeline |
| Kaulin Mfg |
| Shieh Yih Machinery |
Kaulin Mfg and Shieh Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaulin Mfg and Shieh Yih
The main advantage of trading using opposite Kaulin Mfg and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaulin Mfg position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.| Kaulin Mfg vs. Tainan Enterprises Co | Kaulin Mfg vs. Nien Hsing Textile | Kaulin Mfg vs. De Licacy Industrial | Kaulin Mfg vs. Kwong Fong Industries |
| Shieh Yih vs. Basso Industry Corp | Shieh Yih vs. Kaulin Mfg | Shieh Yih vs. TYC Brother Industrial | Shieh Yih vs. Chung Hsin Electric Machinery |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |