Correlation Between Kee Tai and YungShin Global
Can any of the company-specific risk be diversified away by investing in both Kee Tai and YungShin Global 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 Kee Tai and YungShin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kee Tai Properties and YungShin Global Holding, you can compare the effects of market volatilities on Kee Tai and YungShin Global 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 Kee Tai with a short position of YungShin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kee Tai and YungShin Global.
Diversification Opportunities for Kee Tai and YungShin Global
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kee and YungShin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kee Tai Properties and YungShin Global Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YungShin Global Holding and Kee Tai 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 Kee Tai Properties are associated (or correlated) with YungShin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YungShin Global Holding has no effect on the direction of Kee Tai i.e., Kee Tai and YungShin Global go up and down completely randomly.
Pair Corralation between Kee Tai and YungShin Global
Assuming the 90 days trading horizon Kee Tai Properties is expected to generate 1.57 times more return on investment than YungShin Global. However, Kee Tai is 1.57 times more volatile than YungShin Global Holding. It trades about 0.04 of its potential returns per unit of risk. YungShin Global Holding is currently generating about 0.05 per unit of risk. If you would invest 1,210 in Kee Tai Properties on September 2, 2024 and sell it today you would earn a total of 405.00 from holding Kee Tai Properties or generate 33.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kee Tai Properties vs. YungShin Global Holding
Performance |
| Timeline |
| Kee Tai Properties |
| YungShin Global Holding |
Kee Tai and YungShin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kee Tai and YungShin Global
The main advantage of trading using opposite Kee Tai and YungShin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kee Tai position performs unexpectedly, YungShin Global 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 YungShin Global will offset losses from the drop in YungShin Global's long position.| Kee Tai vs. Ruentex Development Co | Kee Tai vs. CTCI Corp | Kee Tai vs. Information Technology Total | Kee Tai vs. Ennoconn Corp |
| YungShin Global vs. Sinphar Pharmaceutical Co | YungShin Global vs. Phytohealth Corp | YungShin Global vs. Excelsior Medical Co | YungShin Global vs. Abnova Taiwan 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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