Correlation Between Yang Ming and Sincere Navigation
Can any of the company-specific risk be diversified away by investing in both Yang Ming and Sincere Navigation 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 Sincere Navigation 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 Sincere Navigation Corp, you can compare the effects of market volatilities on Yang Ming and Sincere Navigation 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 Sincere Navigation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and Sincere Navigation.
Diversification Opportunities for Yang Ming and Sincere Navigation
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yang and Sincere is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and Sincere Navigation Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sincere Navigation 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 Sincere Navigation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sincere Navigation Corp has no effect on the direction of Yang Ming i.e., Yang Ming and Sincere Navigation go up and down completely randomly.
Pair Corralation between Yang Ming and Sincere Navigation
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 2.02 times more return on investment than Sincere Navigation. However, Yang Ming is 2.02 times more volatile than Sincere Navigation Corp. It trades about 0.06 of its potential returns per unit of risk. Sincere Navigation Corp is currently generating about -0.35 per unit of risk. If you would invest 7,750 in Yang Ming Marine on September 23, 2024 and sell it today you would earn a total of 220.00 from holding Yang Ming Marine or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yang Ming Marine vs. Sincere Navigation Corp
Performance |
| Timeline |
| Yang Ming Marine |
| Sincere Navigation Corp |
Yang Ming and Sincere Navigation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and Sincere Navigation
The main advantage of trading using opposite Yang Ming and Sincere Navigation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, Sincere Navigation 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 Sincere Navigation will offset losses from the drop in Sincere Navigation'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 |
| Sincere Navigation vs. Yang Ming Marine | Sincere Navigation vs. Evergreen Marine Corp | Sincere Navigation vs. Eva Airways Corp | Sincere Navigation vs. U Ming Marine Transport |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |