Correlation Between U Ming and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both U Ming and Shieh Yih 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 U Ming and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Ming Marine Transport and Shieh Yih Machinery, you can compare the effects of market volatilities on U Ming and Shieh Yih 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 U Ming with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Ming and Shieh Yih.
Diversification Opportunities for U Ming and Shieh Yih
Excellent diversification
The 3 months correlation between 2606 and Shieh is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding U Ming Marine Transport and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and U Ming 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 U Ming Marine Transport are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of U Ming i.e., U Ming and Shieh Yih go up and down completely randomly.
Pair Corralation between U Ming and Shieh Yih
Assuming the 90 days trading horizon U Ming Marine Transport is expected to generate 0.79 times more return on investment than Shieh Yih. However, U Ming Marine Transport is 1.27 times less risky than Shieh Yih. It trades about -0.06 of its potential returns per unit of risk. Shieh Yih Machinery is currently generating about -0.11 per unit of risk. If you would invest 6,120 in U Ming Marine Transport on October 22, 2024 and sell it today you would lose (330.00) from holding U Ming Marine Transport or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
U Ming Marine Transport vs. Shieh Yih Machinery
Performance |
| Timeline |
| U Ming Marine |
| Shieh Yih Machinery |
U Ming and Shieh Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Ming and Shieh Yih
The main advantage of trading using opposite U Ming and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Ming position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.| U Ming vs. Sincere Navigation Corp | U Ming vs. Wan Hai Lines | U Ming vs. Yang Ming Marine | U Ming vs. Formosa Chemicals Fibre |
| Shieh Yih vs. Basso Industry Corp | Shieh Yih vs. Kaulin Mfg | Shieh Yih vs. TYC Brother Industrial | Shieh Yih vs. Chung Hsin Electric Machinery |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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