Correlation Between Yulon Nissan and Logah Technology
Can any of the company-specific risk be diversified away by investing in both Yulon Nissan and Logah Technology 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 Logah Technology 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 Logah Technology Corp, you can compare the effects of market volatilities on Yulon Nissan and Logah Technology 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 Logah Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Nissan and Logah Technology.
Diversification Opportunities for Yulon Nissan and Logah Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yulon and Logah is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Nissan Motor and Logah Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logah Technology Corp 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 Logah Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logah Technology Corp has no effect on the direction of Yulon Nissan i.e., Yulon Nissan and Logah Technology go up and down completely randomly.
Pair Corralation between Yulon Nissan and Logah Technology
Assuming the 90 days trading horizon Yulon Nissan Motor is expected to under-perform the Logah Technology. But the stock apears to be less risky and, when comparing its historical volatility, Yulon Nissan Motor is 1.7 times less risky than Logah Technology. The stock trades about -0.24 of its potential returns per unit of risk. The Logah Technology Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 719.00 in Logah Technology Corp on October 26, 2024 and sell it today you would earn a total of 1.00 from holding Logah Technology Corp or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Nissan Motor vs. Logah Technology Corp
Performance |
| Timeline |
| Yulon Nissan Motor |
| Logah Technology Corp |
Yulon Nissan and Logah Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Nissan and Logah Technology
The main advantage of trading using opposite Yulon Nissan and Logah Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Nissan position performs unexpectedly, Logah Technology 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 Logah Technology will offset losses from the drop in Logah Technology'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 |
| Logah Technology vs. Unimicron Technology Corp | Logah Technology vs. Kinsus Interconnect Technology | Logah Technology vs. Novatek Microelectronics Corp | Logah Technology vs. Delta Electronics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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