Correlation Between Yulon and CviLux Corp
Can any of the company-specific risk be diversified away by investing in both Yulon and CviLux Corp 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 CviLux Corp 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 CviLux Corp, you can compare the effects of market volatilities on Yulon and CviLux Corp 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 CviLux Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon and CviLux Corp.
Diversification Opportunities for Yulon and CviLux Corp
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yulon and CviLux is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Motor Co and CviLux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CviLux 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 CviLux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CviLux Corp has no effect on the direction of Yulon i.e., Yulon and CviLux Corp go up and down completely randomly.
Pair Corralation between Yulon and CviLux Corp
Assuming the 90 days trading horizon Yulon is expected to generate 1.34 times less return on investment than CviLux Corp. In addition to that, Yulon is 1.14 times more volatile than CviLux Corp. It trades about 0.11 of its total potential returns per unit of risk. CviLux Corp is currently generating about 0.16 per unit of volatility. If you would invest 4,905 in CviLux Corp on November 28, 2024 and sell it today you would earn a total of 165.00 from holding CviLux Corp or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Motor Co vs. CviLux Corp
Performance |
| Timeline |
| Yulon Motor |
| CviLux Corp |
Yulon and CviLux Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon and CviLux Corp
The main advantage of trading using opposite Yulon and CviLux Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon position performs unexpectedly, CviLux Corp 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 CviLux Corp will offset losses from the drop in CviLux Corp's long position.| Yulon vs. China Motor Corp | Yulon vs. China Steel Corp | Yulon vs. Nan Ya Plastics | Yulon vs. Chang Hwa Commercial |
| CviLux Corp vs. Emerging Display Technologies | CviLux Corp vs. Sitronix Technology Corp | CviLux Corp vs. TXC Corp | CviLux Corp vs. BenQ Materials Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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