Correlation Between Yageo Corp and INPAQ Technology
Can any of the company-specific risk be diversified away by investing in both Yageo Corp and INPAQ 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 INPAQ 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 INPAQ Technology Co, you can compare the effects of market volatilities on Yageo Corp and INPAQ 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 INPAQ Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yageo Corp and INPAQ Technology.
Diversification Opportunities for Yageo Corp and INPAQ Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yageo and INPAQ is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Yageo Corp and INPAQ Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPAQ 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 INPAQ Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPAQ Technology has no effect on the direction of Yageo Corp i.e., Yageo Corp and INPAQ Technology go up and down completely randomly.
Pair Corralation between Yageo Corp and INPAQ Technology
Assuming the 90 days trading horizon Yageo Corp is expected to generate 1.64 times more return on investment than INPAQ Technology. However, Yageo Corp is 1.64 times more volatile than INPAQ Technology Co. It trades about 0.35 of its potential returns per unit of risk. INPAQ Technology Co is currently generating about 0.25 per unit of risk. If you would invest 51,900 in Yageo Corp on November 28, 2024 and sell it today you would earn a total of 6,200 from holding Yageo Corp or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Yageo Corp vs. INPAQ Technology Co
Performance |
| Timeline |
| Yageo Corp |
| INPAQ Technology |
Yageo Corp and INPAQ Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yageo Corp and INPAQ Technology
The main advantage of trading using opposite Yageo Corp and INPAQ Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yageo Corp position performs unexpectedly, INPAQ 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 INPAQ Technology will offset losses from the drop in INPAQ Technology's long position.| Yageo Corp vs. Oriental Union Chemical | Yageo Corp vs. Mechema Chemicals Int | Yageo Corp vs. Acelon Chemicals Fiber | Yageo Corp vs. San Fu Chemical |
| INPAQ Technology vs. Hon Hai Precision | INPAQ Technology vs. Delta Electronics | INPAQ Technology vs. LARGAN Precision Co | INPAQ Technology vs. E Ink Holdings |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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