Correlation Between Yageo Corp and Logah Technology
Can any of the company-specific risk be diversified away by investing in both Yageo Corp 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 Yageo Corp and Logah 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 Logah Technology Corp, you can compare the effects of market volatilities on Yageo Corp 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 Yageo Corp with a short position of Logah Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yageo Corp and Logah Technology.
Diversification Opportunities for Yageo Corp and Logah Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yageo and Logah is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Yageo Corp 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 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 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 Yageo Corp i.e., Yageo Corp and Logah Technology go up and down completely randomly.
Pair Corralation between Yageo Corp and Logah Technology
Assuming the 90 days trading horizon Yageo Corp is expected to generate 0.61 times more return on investment than Logah Technology. However, Yageo Corp is 1.64 times less risky than Logah Technology. It trades about 0.02 of its potential returns per unit of risk. Logah Technology Corp is currently generating about -0.03 per unit of risk. If you would invest 53,200 in Yageo Corp on October 11, 2024 and sell it today you would earn a total of 3,200 from holding Yageo Corp or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yageo Corp vs. Logah Technology Corp
Performance |
| Timeline |
| Yageo Corp |
| Logah Technology Corp |
Yageo Corp and Logah Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yageo Corp and Logah Technology
The main advantage of trading using opposite Yageo Corp and Logah Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yageo Corp 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.| Yageo Corp vs. Advanced Wireless Semiconductor | Yageo Corp vs. Elite Material Co | Yageo Corp vs. Goldsun Building Materials | Yageo Corp vs. BenQ Medical Technology |
| Logah Technology vs. Holy Stone Enterprise | Logah Technology vs. Walsin Technology Corp | Logah Technology vs. Yageo Corp | Logah Technology vs. HannStar Board 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |