Correlation Between Clevo and Yulon Nissan
Can any of the company-specific risk be diversified away by investing in both Clevo and Yulon Nissan 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 Yulon Nissan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Yulon Nissan Motor, you can compare the effects of market volatilities on Clevo and Yulon Nissan 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 Yulon Nissan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Yulon Nissan.
Diversification Opportunities for Clevo and Yulon Nissan
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clevo and Yulon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Yulon Nissan Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Nissan Motor 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 Yulon Nissan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Nissan Motor has no effect on the direction of Clevo i.e., Clevo and Yulon Nissan go up and down completely randomly.
Pair Corralation between Clevo and Yulon Nissan
Assuming the 90 days trading horizon Clevo Co is expected to generate 1.74 times more return on investment than Yulon Nissan. However, Clevo is 1.74 times more volatile than Yulon Nissan Motor. It trades about 0.07 of its potential returns per unit of risk. Yulon Nissan Motor is currently generating about -0.1 per unit of risk. If you would invest 4,300 in Clevo Co on September 3, 2024 and sell it today you would earn a total of 1,350 from holding Clevo Co or generate 31.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clevo Co vs. Yulon Nissan Motor
Performance |
| Timeline |
| Clevo |
| Yulon Nissan Motor |
Clevo and Yulon Nissan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Yulon Nissan
The main advantage of trading using opposite Clevo and Yulon Nissan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Yulon Nissan 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 Yulon Nissan will offset losses from the drop in Yulon Nissan's long position.| Clevo vs. Inventec Corp | Clevo vs. Compal Electronics | Clevo vs. Cheng Uei Precision | Clevo vs. Pan International Industrial Corp |
| Yulon Nissan vs. Tainan Spinning Co | Yulon Nissan vs. Chia Her Industrial | Yulon Nissan vs. WiseChip Semiconductor | Yulon Nissan 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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