Correlation Between Yang Ming and Logah Technology
Can any of the company-specific risk be diversified away by investing in both Yang Ming and Logah Technology 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 Logah Technology 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 Logah Technology Corp, you can compare the effects of market volatilities on Yang Ming and Logah Technology 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 Logah Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and Logah Technology.
Diversification Opportunities for Yang Ming and Logah Technology
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yang and Logah is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and Logah Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logah Technology 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 Logah Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logah Technology Corp has no effect on the direction of Yang Ming i.e., Yang Ming and Logah Technology go up and down completely randomly.
Pair Corralation between Yang Ming and Logah Technology
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 0.39 times more return on investment than Logah Technology. However, Yang Ming Marine is 2.57 times less risky than Logah Technology. It trades about 0.09 of its potential returns per unit of risk. Logah Technology Corp is currently generating about -0.21 per unit of risk. If you would invest 7,180 in Yang Ming Marine on October 11, 2024 and sell it today you would earn a total of 580.00 from holding Yang Ming Marine or generate 8.08% 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. Logah Technology Corp
Performance |
| Timeline |
| Yang Ming Marine |
| Logah Technology Corp |
Yang Ming and Logah Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and Logah Technology
The main advantage of trading using opposite Yang Ming and Logah Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, Logah Technology 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 Logah Technology will offset losses from the drop in Logah Technology'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 |
| Logah Technology vs. Aces Electronics Co | Logah Technology vs. Nichidenbo Corp | Logah Technology vs. Cheer Time Enterprise | Logah Technology vs. Edison Opto 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 Stocks Directory module to find actively traded stocks across global markets.
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