Correlation Between YC Inox and Sheng Yu
Can any of the company-specific risk be diversified away by investing in both YC Inox and Sheng Yu 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 YC Inox and Sheng Yu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YC Inox Co and Sheng Yu Steel, you can compare the effects of market volatilities on YC Inox and Sheng Yu 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 YC Inox with a short position of Sheng Yu. Check out your portfolio center. Please also check ongoing floating volatility patterns of YC Inox and Sheng Yu.
Diversification Opportunities for YC Inox and Sheng Yu
Very weak diversification
The 3 months correlation between 2034 and Sheng is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding YC Inox Co and Sheng Yu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sheng Yu Steel and YC Inox 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 YC Inox Co are associated (or correlated) with Sheng Yu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sheng Yu Steel has no effect on the direction of YC Inox i.e., YC Inox and Sheng Yu go up and down completely randomly.
Pair Corralation between YC Inox and Sheng Yu
Assuming the 90 days trading horizon YC Inox Co is expected to under-perform the Sheng Yu. But the stock apears to be less risky and, when comparing its historical volatility, YC Inox Co is 1.13 times less risky than Sheng Yu. The stock trades about -0.09 of its potential returns per unit of risk. The Sheng Yu Steel is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,545 in Sheng Yu Steel on September 2, 2024 and sell it today you would lose (55.00) from holding Sheng Yu Steel or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YC Inox Co vs. Sheng Yu Steel
Performance |
| Timeline |
| YC Inox |
| Sheng Yu Steel |
YC Inox and Sheng Yu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YC Inox and Sheng Yu
The main advantage of trading using opposite YC Inox and Sheng Yu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YC Inox position performs unexpectedly, Sheng Yu 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 Sheng Yu will offset losses from the drop in Sheng Yu's long position.| YC Inox vs. Ta Chen Stainless | YC Inox vs. Chung Hung Steel | YC Inox vs. Tung Ho Steel | YC Inox vs. Hsin Kuang Steel |
| Sheng Yu vs. Yieh Phui Enterprise | Sheng Yu vs. Tung Ho Steel | Sheng Yu vs. Feng Hsin Steel | Sheng Yu vs. Chung Hung Steel |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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