Correlation Between Airtac International and Yulon
Can any of the company-specific risk be diversified away by investing in both Airtac International and Yulon 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 Airtac International and Yulon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airtac International Group and Yulon Motor Co, you can compare the effects of market volatilities on Airtac International and Yulon 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 Airtac International with a short position of Yulon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airtac International and Yulon.
Diversification Opportunities for Airtac International and Yulon
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Airtac and Yulon is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Airtac International Group and Yulon Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Motor and Airtac International 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 Airtac International Group are associated (or correlated) with Yulon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Motor has no effect on the direction of Airtac International i.e., Airtac International and Yulon go up and down completely randomly.
Pair Corralation between Airtac International and Yulon
Assuming the 90 days trading horizon Airtac International Group is expected to generate 1.62 times more return on investment than Yulon. However, Airtac International is 1.62 times more volatile than Yulon Motor Co. It trades about 0.26 of its potential returns per unit of risk. Yulon Motor Co is currently generating about 0.11 per unit of risk. If you would invest 86,200 in Airtac International Group on November 28, 2024 and sell it today you would earn a total of 8,900 from holding Airtac International Group or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airtac International Group vs. Yulon Motor Co
Performance |
| Timeline |
| Airtac International |
| Yulon Motor |
Airtac International and Yulon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airtac International and Yulon
The main advantage of trading using opposite Airtac International and Yulon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airtac International position performs unexpectedly, Yulon 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 Yulon will offset losses from the drop in Yulon's long position.| Airtac International vs. Hiwin Technologies Corp | Airtac International vs. Advantech Co | Airtac International vs. Delta Electronics | Airtac International vs. Eclat Textile Co |
| Yulon vs. China Motor Corp | Yulon vs. China Steel Corp | Yulon vs. Nan Ya Plastics | Yulon vs. Chang Hwa Commercial |
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.
Other Complementary Tools
| 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 | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |