Correlation Between Cub Elecparts and Yusin Holding
Can any of the company-specific risk be diversified away by investing in both Cub Elecparts and Yusin Holding 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 Cub Elecparts and Yusin Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cub Elecparts and Yusin Holding Corp, you can compare the effects of market volatilities on Cub Elecparts and Yusin Holding 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 Cub Elecparts with a short position of Yusin Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cub Elecparts and Yusin Holding.
Diversification Opportunities for Cub Elecparts and Yusin Holding
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cub and Yusin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cub Elecparts and Yusin Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yusin Holding Corp and Cub Elecparts 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 Cub Elecparts are associated (or correlated) with Yusin Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yusin Holding Corp has no effect on the direction of Cub Elecparts i.e., Cub Elecparts and Yusin Holding go up and down completely randomly.
Pair Corralation between Cub Elecparts and Yusin Holding
Assuming the 90 days trading horizon Cub Elecparts is expected to under-perform the Yusin Holding. In addition to that, Cub Elecparts is 1.05 times more volatile than Yusin Holding Corp. It trades about -0.04 of its total potential returns per unit of risk. Yusin Holding Corp is currently generating about 0.04 per unit of volatility. If you would invest 10,200 in Yusin Holding Corp on September 2, 2024 and sell it today you would earn a total of 3,550 from holding Yusin Holding Corp or generate 34.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cub Elecparts vs. Yusin Holding Corp
Performance |
| Timeline |
| Cub Elecparts |
| Yusin Holding Corp |
Cub Elecparts and Yusin Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cub Elecparts and Yusin Holding
The main advantage of trading using opposite Cub Elecparts and Yusin Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cub Elecparts position performs unexpectedly, Yusin Holding 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 Yusin Holding will offset losses from the drop in Yusin Holding's long position.| Cub Elecparts vs. Chaintech Technology Corp | Cub Elecparts vs. Avision | Cub Elecparts vs. Clevo Co | Cub Elecparts vs. Elitegroup Computer Systems |
| Yusin Holding vs. Hota Industrial Mfg | Yusin Holding vs. BizLink Holding | Yusin Holding vs. Cub Elecparts | Yusin Holding vs. Hu Lane Associate |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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