Correlation Between Yeong Guan and Solar Applied
Can any of the company-specific risk be diversified away by investing in both Yeong Guan and Solar Applied 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 Yeong Guan and Solar Applied into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yeong Guan Energy and Solar Applied Materials, you can compare the effects of market volatilities on Yeong Guan and Solar Applied 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 Yeong Guan with a short position of Solar Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yeong Guan and Solar Applied.
Diversification Opportunities for Yeong Guan and Solar Applied
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yeong and Solar is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yeong Guan Energy and Solar Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solar Applied Materials and Yeong Guan 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 Yeong Guan Energy are associated (or correlated) with Solar Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solar Applied Materials has no effect on the direction of Yeong Guan i.e., Yeong Guan and Solar Applied go up and down completely randomly.
Pair Corralation between Yeong Guan and Solar Applied
Assuming the 90 days trading horizon Yeong Guan Energy is expected to under-perform the Solar Applied. But the stock apears to be less risky and, when comparing its historical volatility, Yeong Guan Energy is 1.21 times less risky than Solar Applied. The stock trades about -0.05 of its potential returns per unit of risk. The Solar Applied Materials is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,684 in Solar Applied Materials on August 27, 2024 and sell it today you would earn a total of 2,386 from holding Solar Applied Materials or generate 64.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yeong Guan Energy vs. Solar Applied Materials
Performance |
| Timeline |
| Yeong Guan Energy |
| Solar Applied Materials |
Yeong Guan and Solar Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yeong Guan and Solar Applied
The main advantage of trading using opposite Yeong Guan and Solar Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yeong Guan position performs unexpectedly, Solar Applied 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 Solar Applied will offset losses from the drop in Solar Applied's long position.| Yeong Guan vs. TECO Electric Machinery | Yeong Guan vs. Swancor Holding Co | Yeong Guan vs. Airtac International Group | Yeong Guan vs. Grape King Bio |
| Solar Applied vs. Wafer Works | Solar Applied vs. Sino American Silicon Products | Solar Applied vs. StShine Optical Co | Solar Applied vs. Phison Electronics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |