Correlation Between Yulon Nissan and Poya International
Can any of the company-specific risk be diversified away by investing in both Yulon Nissan and Poya International 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 Poya International 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 Poya International Co, you can compare the effects of market volatilities on Yulon Nissan and Poya International 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 Poya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Nissan and Poya International.
Diversification Opportunities for Yulon Nissan and Poya International
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yulon and Poya is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Nissan Motor and Poya International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poya International 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 Poya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poya International has no effect on the direction of Yulon Nissan i.e., Yulon Nissan and Poya International go up and down completely randomly.
Pair Corralation between Yulon Nissan and Poya International
Assuming the 90 days trading horizon Yulon Nissan Motor is expected to under-perform the Poya International. In addition to that, Yulon Nissan is 3.37 times more volatile than Poya International Co. It trades about -0.26 of its total potential returns per unit of risk. Poya International Co is currently generating about -0.08 per unit of volatility. If you would invest 48,350 in Poya International Co on September 12, 2024 and sell it today you would lose (650.00) from holding Poya International Co or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Nissan Motor vs. Poya International Co
Performance |
| Timeline |
| Yulon Nissan Motor |
| Poya International |
Yulon Nissan and Poya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Nissan and Poya International
The main advantage of trading using opposite Yulon Nissan and Poya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Nissan position performs unexpectedly, Poya International 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 Poya International will offset losses from the drop in Poya International's long position.| Yulon Nissan vs. Feng Tay Enterprises | Yulon Nissan vs. Ruentex Development Co | Yulon Nissan vs. WiseChip Semiconductor | Yulon Nissan vs. Novatek Microelectronics Corp |
| Poya International vs. Feng Tay Enterprises | Poya International vs. Ruentex Development Co | Poya International vs. WiseChip Semiconductor | Poya International vs. Novatek Microelectronics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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