Correlation Between Yageo Corp and Edom Technology
Can any of the company-specific risk be diversified away by investing in both Yageo Corp and Edom 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 Yageo Corp and Edom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yageo Corp and Edom Technology Co, you can compare the effects of market volatilities on Yageo Corp and Edom 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 Yageo Corp with a short position of Edom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yageo Corp and Edom Technology.
Diversification Opportunities for Yageo Corp and Edom Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yageo and Edom is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Yageo Corp and Edom Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edom Technology and Yageo Corp 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 Yageo Corp are associated (or correlated) with Edom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edom Technology has no effect on the direction of Yageo Corp i.e., Yageo Corp and Edom Technology go up and down completely randomly.
Pair Corralation between Yageo Corp and Edom Technology
Assuming the 90 days trading horizon Yageo Corp is expected to generate 1.13 times more return on investment than Edom Technology. However, Yageo Corp is 1.13 times more volatile than Edom Technology Co. It trades about -0.01 of its potential returns per unit of risk. Edom Technology Co is currently generating about -0.3 per unit of risk. If you would invest 52,500 in Yageo Corp on October 21, 2024 and sell it today you would lose (400.00) from holding Yageo Corp or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yageo Corp vs. Edom Technology Co
Performance |
| Timeline |
| Yageo Corp |
| Edom Technology |
Yageo Corp and Edom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yageo Corp and Edom Technology
The main advantage of trading using opposite Yageo Corp and Edom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yageo Corp position performs unexpectedly, Edom 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 Edom Technology will offset losses from the drop in Edom Technology's long position.| Yageo Corp vs. SS Healthcare Holding | Yageo Corp vs. Sports Gear Co | Yageo Corp vs. Feng Ching Metal | Yageo Corp vs. U Ming Marine Transport |
| Edom Technology vs. ASRock Inc | Edom Technology vs. FIC Global | Edom Technology vs. In Win Development | Edom Technology vs. Getac Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |