Correlation Between DeviceENGCOLtd and Wing Yip
Can any of the company-specific risk be diversified away by investing in both DeviceENGCOLtd and Wing Yip 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 DeviceENGCOLtd and Wing Yip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DeviceENGCOLtd and Wing Yip Food, you can compare the effects of market volatilities on DeviceENGCOLtd and Wing Yip 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 DeviceENGCOLtd with a short position of Wing Yip. Check out your portfolio center. Please also check ongoing floating volatility patterns of DeviceENGCOLtd and Wing Yip.
Diversification Opportunities for DeviceENGCOLtd and Wing Yip
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DeviceENGCOLtd and Wing is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding DeviceENGCOLtd and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food and DeviceENGCOLtd 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 DeviceENGCOLtd are associated (or correlated) with Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of DeviceENGCOLtd i.e., DeviceENGCOLtd and Wing Yip go up and down completely randomly.
Pair Corralation between DeviceENGCOLtd and Wing Yip
Assuming the 90 days trading horizon DeviceENGCOLtd is expected to under-perform the Wing Yip. But the stock apears to be less risky and, when comparing its historical volatility, DeviceENGCOLtd is 4.21 times less risky than Wing Yip. The stock trades about -0.04 of its potential returns per unit of risk. The Wing Yip Food is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 98,500 in Wing Yip Food on September 1, 2024 and sell it today you would earn a total of 112,500 from holding Wing Yip Food or generate 114.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DeviceENGCOLtd vs. Wing Yip Food
Performance |
| Timeline |
| DeviceENGCOLtd |
| Wing Yip Food |
DeviceENGCOLtd and Wing Yip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DeviceENGCOLtd and Wing Yip
The main advantage of trading using opposite DeviceENGCOLtd and Wing Yip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DeviceENGCOLtd position performs unexpectedly, Wing Yip 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 Wing Yip will offset losses from the drop in Wing Yip's long position.| DeviceENGCOLtd vs. Atinum Investment Co | DeviceENGCOLtd vs. Dongil Steel Co | DeviceENGCOLtd vs. Ni Steel | DeviceENGCOLtd vs. TS Investment Corp |
| Wing Yip vs. Maeil Dairies Co | Wing Yip vs. Busan Industrial Co | Wing Yip vs. Busan Ind | Wing Yip vs. Mirae Asset Daewoo |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |