Correlation Between Yang Ming and Apex Biotechnology
Can any of the company-specific risk be diversified away by investing in both Yang Ming and Apex Biotechnology 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 Apex Biotechnology 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 Apex Biotechnology Corp, you can compare the effects of market volatilities on Yang Ming and Apex Biotechnology 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 Apex Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and Apex Biotechnology.
Diversification Opportunities for Yang Ming and Apex Biotechnology
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yang and Apex is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and Apex Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Biotechnology Corp 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 Apex Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Biotechnology Corp has no effect on the direction of Yang Ming i.e., Yang Ming and Apex Biotechnology go up and down completely randomly.
Pair Corralation between Yang Ming and Apex Biotechnology
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 1.22 times more return on investment than Apex Biotechnology. However, Yang Ming is 1.22 times more volatile than Apex Biotechnology Corp. It trades about 0.37 of its potential returns per unit of risk. Apex Biotechnology Corp is currently generating about -0.02 per unit of risk. If you would invest 6,610 in Yang Ming Marine on November 27, 2024 and sell it today you would earn a total of 630.00 from holding Yang Ming Marine or generate 9.53% 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. Apex Biotechnology Corp
Performance |
| Timeline |
| Yang Ming Marine |
| Apex Biotechnology Corp |
Yang Ming and Apex Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and Apex Biotechnology
The main advantage of trading using opposite Yang Ming and Apex Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, Apex Biotechnology 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 Apex Biotechnology will offset losses from the drop in Apex Biotechnology'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 |
| Apex Biotechnology vs. Grape King Bio | Apex Biotechnology vs. Standard Chemical Pharmaceutical | Apex Biotechnology vs. China Steel Chemical | Apex Biotechnology vs. Sinphar Pharmaceutical 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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