Correlation Between Apex Biotechnology and YungShin Global
Can any of the company-specific risk be diversified away by investing in both Apex Biotechnology and YungShin Global 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 Apex Biotechnology and YungShin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apex Biotechnology Corp and YungShin Global Holding, you can compare the effects of market volatilities on Apex Biotechnology and YungShin Global 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 Apex Biotechnology with a short position of YungShin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Biotechnology and YungShin Global.
Diversification Opportunities for Apex Biotechnology and YungShin Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apex and YungShin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apex Biotechnology Corp and YungShin Global Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YungShin Global Holding and Apex Biotechnology 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 Apex Biotechnology Corp are associated (or correlated) with YungShin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YungShin Global Holding has no effect on the direction of Apex Biotechnology i.e., Apex Biotechnology and YungShin Global go up and down completely randomly.
Pair Corralation between Apex Biotechnology and YungShin Global
Assuming the 90 days trading horizon Apex Biotechnology Corp is expected to under-perform the YungShin Global. But the stock apears to be less risky and, when comparing its historical volatility, Apex Biotechnology Corp is 1.2 times less risky than YungShin Global. The stock trades about -0.13 of its potential returns per unit of risk. The YungShin Global Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,480 in YungShin Global Holding on September 12, 2024 and sell it today you would earn a total of 40.00 from holding YungShin Global Holding or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Biotechnology Corp vs. YungShin Global Holding
Performance |
| Timeline |
| Apex Biotechnology Corp |
| YungShin Global Holding |
Apex Biotechnology and YungShin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Biotechnology and YungShin Global
The main advantage of trading using opposite Apex Biotechnology and YungShin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Biotechnology position performs unexpectedly, YungShin Global 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 YungShin Global will offset losses from the drop in YungShin Global's long position.| Apex Biotechnology vs. Ruentex Development Co | Apex Biotechnology vs. WiseChip Semiconductor | Apex Biotechnology vs. Novatek Microelectronics Corp | Apex Biotechnology vs. Leader Electronics |
| YungShin Global vs. Apex Biotechnology Corp | YungShin Global vs. Ruentex Development Co | YungShin Global vs. WiseChip Semiconductor | YungShin Global vs. Novatek Microelectronics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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