Correlation Between Yang Ming and Cyberlink
Can any of the company-specific risk be diversified away by investing in both Yang Ming and Cyberlink 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 Cyberlink 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 Cyberlink Co, you can compare the effects of market volatilities on Yang Ming and Cyberlink 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 Cyberlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and Cyberlink.
Diversification Opportunities for Yang Ming and Cyberlink
Excellent diversification
The 3 months correlation between Yang and Cyberlink is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and Cyberlink Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlink 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 Cyberlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlink has no effect on the direction of Yang Ming i.e., Yang Ming and Cyberlink go up and down completely randomly.
Pair Corralation between Yang Ming and Cyberlink
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 1.51 times more return on investment than Cyberlink. However, Yang Ming is 1.51 times more volatile than Cyberlink Co. It trades about 0.06 of its potential returns per unit of risk. Cyberlink Co is currently generating about -0.01 per unit of risk. If you would invest 4,475 in Yang Ming Marine on September 1, 2024 and sell it today you would earn a total of 2,845 from holding Yang Ming Marine or generate 63.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Yang Ming Marine vs. Cyberlink Co
Performance |
| Timeline |
| Yang Ming Marine |
| Cyberlink |
Yang Ming and Cyberlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and Cyberlink
The main advantage of trading using opposite Yang Ming and Cyberlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, Cyberlink 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 Cyberlink will offset losses from the drop in Cyberlink'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 |
| Cyberlink vs. Kinsus Interconnect Technology | Cyberlink vs. Topco Scientific Co | Cyberlink vs. Wistron Corp | Cyberlink vs. Elan Microelectronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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