Correlation Between Solar Applied and Yeong Guan
Can any of the company-specific risk be diversified away by investing in both Solar Applied and Yeong Guan 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 Solar Applied and Yeong Guan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solar Applied Materials and Yeong Guan Energy, you can compare the effects of market volatilities on Solar Applied and Yeong Guan 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 Solar Applied with a short position of Yeong Guan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solar Applied and Yeong Guan.
Diversification Opportunities for Solar Applied and Yeong Guan
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Solar and Yeong is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Solar Applied Materials and Yeong Guan Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yeong Guan Energy and Solar Applied 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 Solar Applied Materials are associated (or correlated) with Yeong Guan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yeong Guan Energy has no effect on the direction of Solar Applied i.e., Solar Applied and Yeong Guan go up and down completely randomly.
Pair Corralation between Solar Applied and Yeong Guan
Assuming the 90 days trading horizon Solar Applied Materials is expected to under-perform the Yeong Guan. In addition to that, Solar Applied is 1.21 times more volatile than Yeong Guan Energy. It trades about -0.17 of its total potential returns per unit of risk. Yeong Guan Energy is currently generating about -0.04 per unit of volatility. If you would invest 4,080 in Yeong Guan Energy on August 24, 2024 and sell it today you would lose (90.00) from holding Yeong Guan Energy or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solar Applied Materials vs. Yeong Guan Energy
Performance |
| Timeline |
| Solar Applied Materials |
| Yeong Guan Energy |
Solar Applied and Yeong Guan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solar Applied and Yeong Guan
The main advantage of trading using opposite Solar Applied and Yeong Guan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solar Applied position performs unexpectedly, Yeong Guan 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 Yeong Guan will offset losses from the drop in Yeong Guan's long position.| Solar Applied vs. Wafer Works | Solar Applied vs. Sino American Silicon Products | Solar Applied vs. StShine Optical Co | Solar Applied vs. Phison Electronics |
| Yeong Guan vs. TECO Electric Machinery | Yeong Guan vs. Swancor Holding Co | Yeong Guan vs. Airtac International Group | Yeong Guan vs. Grape King Bio |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |