Correlation Between Yulon Nissan and Ampoc Far
Can any of the company-specific risk be diversified away by investing in both Yulon Nissan and Ampoc Far 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 Nissan and Ampoc Far into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yulon Nissan Motor and Ampoc Far East Co, you can compare the effects of market volatilities on Yulon Nissan and Ampoc Far 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 Nissan with a short position of Ampoc Far. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Nissan and Ampoc Far.
Diversification Opportunities for Yulon Nissan and Ampoc Far
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yulon and Ampoc is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Nissan Motor and Ampoc Far East Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampoc Far East and Yulon Nissan 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 Nissan Motor are associated (or correlated) with Ampoc Far. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampoc Far East has no effect on the direction of Yulon Nissan i.e., Yulon Nissan and Ampoc Far go up and down completely randomly.
Pair Corralation between Yulon Nissan and Ampoc Far
Assuming the 90 days trading horizon Yulon Nissan Motor is expected to under-perform the Ampoc Far. In addition to that, Yulon Nissan is 1.05 times more volatile than Ampoc Far East Co. It trades about -0.24 of its total potential returns per unit of risk. Ampoc Far East Co is currently generating about 0.01 per unit of volatility. If you would invest 9,760 in Ampoc Far East Co on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Ampoc Far East Co or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Nissan Motor vs. Ampoc Far East Co
Performance |
| Timeline |
| Yulon Nissan Motor |
| Ampoc Far East |
Yulon Nissan and Ampoc Far Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Nissan and Ampoc Far
The main advantage of trading using opposite Yulon Nissan and Ampoc Far positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Nissan position performs unexpectedly, Ampoc Far 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 Ampoc Far will offset losses from the drop in Ampoc Far's long position.| Yulon Nissan vs. Hotai Motor Co | Yulon Nissan vs. Yulon Motor Co | Yulon Nissan vs. Cheng Shin Rubber | Yulon Nissan vs. Formosa Chemicals Fibre |
| Ampoc Far vs. Greatek Electronics | Ampoc Far vs. Stark Technology | Ampoc Far vs. Elan Microelectronics Corp | Ampoc Far vs. Wellell |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |