Correlation Between C Sun and Ying Han
Can any of the company-specific risk be diversified away by investing in both C Sun and Ying Han 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 C Sun and Ying Han into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Sun Manufacturing and Ying Han Technology, you can compare the effects of market volatilities on C Sun and Ying Han 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 C Sun with a short position of Ying Han. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Sun and Ying Han.
Diversification Opportunities for C Sun and Ying Han
Very good diversification
The 3 months correlation between 2467 and Ying is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding C Sun Manufacturing and Ying Han Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ying Han Technology and C Sun 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 C Sun Manufacturing are associated (or correlated) with Ying Han. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ying Han Technology has no effect on the direction of C Sun i.e., C Sun and Ying Han go up and down completely randomly.
Pair Corralation between C Sun and Ying Han
Assuming the 90 days trading horizon C Sun is expected to generate 1.35 times less return on investment than Ying Han. But when comparing it to its historical volatility, C Sun Manufacturing is 1.13 times less risky than Ying Han. It trades about 0.13 of its potential returns per unit of risk. Ying Han Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,550 in Ying Han Technology on September 3, 2024 and sell it today you would earn a total of 4,960 from holding Ying Han Technology or generate 320.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
C Sun Manufacturing vs. Ying Han Technology
Performance |
| Timeline |
| C Sun Manufacturing |
| Ying Han Technology |
C Sun and Ying Han Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Sun and Ying Han
The main advantage of trading using opposite C Sun and Ying Han positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Sun position performs unexpectedly, Ying Han 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 Ying Han will offset losses from the drop in Ying Han's long position.| C Sun vs. G Shank Enterprise Co | C Sun vs. Siward Crystal Technology | C Sun vs. Mirle Automation Corp | C Sun vs. Lelon Electronics Corp |
| Ying Han vs. Globaltek Fabrication Co | Ying Han vs. SCI Pharmtech | Ying Han vs. Kayee International Group | Ying Han vs. Hai Kwang Enterprise |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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