Correlation Between Yang Ming and HUA YU
Can any of the company-specific risk be diversified away by investing in both Yang Ming and HUA YU 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 Yang Ming and HUA YU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yang Ming Marine and HUA YU LIEN, you can compare the effects of market volatilities on Yang Ming and HUA YU 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 Yang Ming with a short position of HUA YU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and HUA YU.
Diversification Opportunities for Yang Ming and HUA YU
Pay attention - limited upside
The 3 months correlation between Yang and HUA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and HUA YU LIEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUA YU LIEN and Yang 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 Yang Ming Marine are associated (or correlated) with HUA YU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUA YU LIEN has no effect on the direction of Yang Ming i.e., Yang Ming and HUA YU go up and down completely randomly.
Pair Corralation between Yang Ming and HUA YU
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 1.08 times more return on investment than HUA YU. However, Yang Ming is 1.08 times more volatile than HUA YU LIEN. It trades about 0.22 of its potential returns per unit of risk. HUA YU LIEN is currently generating about -0.14 per unit of risk. If you would invest 6,810 in Yang Ming Marine on September 5, 2024 and sell it today you would earn a total of 760.00 from holding Yang Ming Marine or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yang Ming Marine vs. HUA YU LIEN
Performance |
| Timeline |
| Yang Ming Marine |
| HUA YU LIEN |
Yang Ming and HUA YU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and HUA YU
The main advantage of trading using opposite Yang Ming and HUA YU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, HUA YU 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 HUA YU will offset losses from the drop in HUA YU's long position.| Yang Ming vs. Evergreen Marine Corp | Yang Ming vs. Wan Hai Lines | Yang Ming vs. China Airlines | Yang Ming vs. Eva Airways Corp |
| HUA YU vs. Advancetek Enterprise Co | HUA YU vs. GTM Holdings Corp | HUA YU vs. De Licacy Industrial | HUA YU vs. Shinkong Textile Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |