Correlation Between Yulon and Mirle Automation
Can any of the company-specific risk be diversified away by investing in both Yulon and Mirle Automation 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 Yulon and Mirle Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yulon Motor Co and Mirle Automation Corp, you can compare the effects of market volatilities on Yulon and Mirle Automation 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 Yulon with a short position of Mirle Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon and Mirle Automation.
Diversification Opportunities for Yulon and Mirle Automation
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yulon and Mirle is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Motor Co and Mirle Automation Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirle Automation Corp and Yulon 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 Yulon Motor Co are associated (or correlated) with Mirle Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirle Automation Corp has no effect on the direction of Yulon i.e., Yulon and Mirle Automation go up and down completely randomly.
Pair Corralation between Yulon and Mirle Automation
Assuming the 90 days trading horizon Yulon Motor Co is expected to under-perform the Mirle Automation. In addition to that, Yulon is 1.07 times more volatile than Mirle Automation Corp. It trades about -0.04 of its total potential returns per unit of risk. Mirle Automation Corp is currently generating about -0.03 per unit of volatility. If you would invest 7,740 in Mirle Automation Corp on September 1, 2024 and sell it today you would lose (160.00) from holding Mirle Automation Corp or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yulon Motor Co vs. Mirle Automation Corp
Performance |
| Timeline |
| Yulon Motor |
| Mirle Automation Corp |
Yulon and Mirle Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon and Mirle Automation
The main advantage of trading using opposite Yulon and Mirle Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon position performs unexpectedly, Mirle Automation 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 Mirle Automation will offset losses from the drop in Mirle Automation's long position.| Yulon vs. China Motor Corp | Yulon vs. China Steel Corp | Yulon vs. Nan Ya Plastics | Yulon vs. Chang Hwa Commercial |
| Mirle Automation vs. BES Engineering Co | Mirle Automation vs. Continental Holdings Corp | Mirle Automation vs. Kee Tai Properties | Mirle Automation vs. Hung Sheng Construction |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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