Correlation Between Yieh Phui and Basso Industry
Can any of the company-specific risk be diversified away by investing in both Yieh Phui and Basso Industry 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 Yieh Phui and Basso Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yieh Phui Enterprise and Basso Industry Corp, you can compare the effects of market volatilities on Yieh Phui and Basso Industry 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 Yieh Phui with a short position of Basso Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh Phui and Basso Industry.
Diversification Opportunities for Yieh Phui and Basso Industry
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yieh and Basso is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Yieh Phui Enterprise and Basso Industry Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basso Industry Corp and Yieh Phui 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 Yieh Phui Enterprise are associated (or correlated) with Basso Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basso Industry Corp has no effect on the direction of Yieh Phui i.e., Yieh Phui and Basso Industry go up and down completely randomly.
Pair Corralation between Yieh Phui and Basso Industry
Assuming the 90 days trading horizon Yieh Phui Enterprise is expected to generate 0.67 times more return on investment than Basso Industry. However, Yieh Phui Enterprise is 1.49 times less risky than Basso Industry. It trades about 0.02 of its potential returns per unit of risk. Basso Industry Corp is currently generating about -0.05 per unit of risk. If you would invest 1,515 in Yieh Phui Enterprise on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Yieh Phui Enterprise or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yieh Phui Enterprise vs. Basso Industry Corp
Performance |
| Timeline |
| Yieh Phui Enterprise |
| Basso Industry Corp |
Yieh Phui and Basso Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yieh Phui and Basso Industry
The main advantage of trading using opposite Yieh Phui and Basso Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh Phui position performs unexpectedly, Basso Industry 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 Basso Industry will offset losses from the drop in Basso Industry's long position.| Yieh Phui vs. Basso Industry Corp | Yieh Phui vs. Chung Hsin Electric Machinery | Yieh Phui vs. TYC Brother Industrial | Yieh Phui vs. TECO Electric Machinery |
| Basso Industry vs. Cheng Shin Rubber | Basso Industry vs. Kung Long Batteries | Basso Industry vs. Pou Chen Corp | Basso Industry vs. China Steel Chemical |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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