Correlation Between Clevo and Yi Jinn
Can any of the company-specific risk be diversified away by investing in both Clevo and Yi Jinn 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 Clevo and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Yi Jinn Industrial, you can compare the effects of market volatilities on Clevo and Yi Jinn 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 Clevo with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Yi Jinn.
Diversification Opportunities for Clevo and Yi Jinn
Good diversification
The 3 months correlation between Clevo and 1457 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and Clevo 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 Clevo Co are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of Clevo i.e., Clevo and Yi Jinn go up and down completely randomly.
Pair Corralation between Clevo and Yi Jinn
Assuming the 90 days trading horizon Clevo Co is expected to generate 2.08 times more return on investment than Yi Jinn. However, Clevo is 2.08 times more volatile than Yi Jinn Industrial. It trades about 0.04 of its potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.02 per unit of risk. If you would invest 4,775 in Clevo Co on September 3, 2024 and sell it today you would earn a total of 875.00 from holding Clevo Co or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clevo Co vs. Yi Jinn Industrial
Performance |
| Timeline |
| Clevo |
| Yi Jinn Industrial |
Clevo and Yi Jinn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Yi Jinn
The main advantage of trading using opposite Clevo and Yi Jinn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Yi Jinn 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 Yi Jinn will offset losses from the drop in Yi Jinn's long position.| Clevo vs. Inventec Corp | Clevo vs. Compal Electronics | Clevo vs. Cheng Uei Precision | Clevo vs. Pan International Industrial Corp |
| Yi Jinn vs. Tainan Spinning Co | Yi Jinn vs. Chia Her Industrial | Yi Jinn vs. WiseChip Semiconductor | Yi Jinn vs. Novatek Microelectronics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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