Correlation Between Yageo Corp and Sensortek Technology
Can any of the company-specific risk be diversified away by investing in both Yageo Corp and Sensortek 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 Sensortek 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 Sensortek Technology Corp, you can compare the effects of market volatilities on Yageo Corp and Sensortek 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 Sensortek Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yageo Corp and Sensortek Technology.
Diversification Opportunities for Yageo Corp and Sensortek Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yageo and Sensortek is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yageo Corp and Sensortek Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensortek 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 Sensortek Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensortek Technology Corp has no effect on the direction of Yageo Corp i.e., Yageo Corp and Sensortek Technology go up and down completely randomly.
Pair Corralation between Yageo Corp and Sensortek Technology
Assuming the 90 days trading horizon Yageo Corp is expected to under-perform the Sensortek Technology. In addition to that, Yageo Corp is 1.07 times more volatile than Sensortek Technology Corp. It trades about -0.07 of its total potential returns per unit of risk. Sensortek Technology Corp is currently generating about -0.06 per unit of volatility. If you would invest 33,800 in Sensortek Technology Corp on September 1, 2024 and sell it today you would lose (6,500) from holding Sensortek Technology Corp or give up 19.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Yageo Corp vs. Sensortek Technology Corp
Performance |
| Timeline |
| Yageo Corp |
| Sensortek Technology Corp |
Yageo Corp and Sensortek Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yageo Corp and Sensortek Technology
The main advantage of trading using opposite Yageo Corp and Sensortek Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yageo Corp position performs unexpectedly, Sensortek 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 Sensortek Technology will offset losses from the drop in Sensortek Technology's long position.| Yageo Corp vs. Chicony Power Technology | Yageo Corp vs. AzureWave Technologies | Yageo Corp vs. United Radiant Technology | Yageo Corp vs. Arbor Technology |
| Sensortek Technology vs. Hon Hai Precision | Sensortek Technology vs. Delta Electronics | Sensortek Technology vs. LARGAN Precision Co | Sensortek Technology vs. Yageo 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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