Correlation Between Yulon Nissan and Jetway Information
Can any of the company-specific risk be diversified away by investing in both Yulon Nissan and Jetway Information 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 Jetway Information 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 Jetway Information Co, you can compare the effects of market volatilities on Yulon Nissan and Jetway Information 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 Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Nissan and Jetway Information.
Diversification Opportunities for Yulon Nissan and Jetway Information
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yulon and Jetway is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Nissan Motor and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information 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 Jetway Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetway Information has no effect on the direction of Yulon Nissan i.e., Yulon Nissan and Jetway Information go up and down completely randomly.
Pair Corralation between Yulon Nissan and Jetway Information
Assuming the 90 days trading horizon Yulon Nissan Motor is expected to generate 0.84 times more return on investment than Jetway Information. However, Yulon Nissan Motor is 1.19 times less risky than Jetway Information. It trades about -0.29 of its potential returns per unit of risk. Jetway Information Co is currently generating about -0.32 per unit of risk. If you would invest 7,960 in Yulon Nissan Motor on October 28, 2024 and sell it today you would lose (820.00) from holding Yulon Nissan Motor or give up 10.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Nissan Motor vs. Jetway Information Co
Performance |
| Timeline |
| Yulon Nissan Motor |
| Jetway Information |
Yulon Nissan and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Nissan and Jetway Information
The main advantage of trading using opposite Yulon Nissan and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Nissan position performs unexpectedly, Jetway Information 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 Jetway Information will offset losses from the drop in Jetway Information'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 |
| Jetway Information vs. Unimicron Technology Corp | Jetway Information vs. Kinsus Interconnect Technology | Jetway Information vs. Novatek Microelectronics Corp | Jetway Information 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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