Correlation Between Yang Ming and Medigen Vaccine
Can any of the company-specific risk be diversified away by investing in both Yang Ming and Medigen Vaccine 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 Medigen Vaccine 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 Medigen Vaccine Biologics, you can compare the effects of market volatilities on Yang Ming and Medigen Vaccine 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 Medigen Vaccine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and Medigen Vaccine.
Diversification Opportunities for Yang Ming and Medigen Vaccine
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yang and Medigen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and Medigen Vaccine Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigen Vaccine Biologics 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 Medigen Vaccine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigen Vaccine Biologics has no effect on the direction of Yang Ming i.e., Yang Ming and Medigen Vaccine go up and down completely randomly.
Pair Corralation between Yang Ming and Medigen Vaccine
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 1.31 times more return on investment than Medigen Vaccine. However, Yang Ming is 1.31 times more volatile than Medigen Vaccine Biologics. It trades about 0.06 of its potential returns per unit of risk. Medigen Vaccine Biologics is currently generating about -0.05 per unit of risk. If you would invest 4,453 in Yang Ming Marine on August 31, 2024 and sell it today you would earn a total of 2,867 from holding Yang Ming Marine or generate 64.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Yang Ming Marine vs. Medigen Vaccine Biologics
Performance |
| Timeline |
| Yang Ming Marine |
| Medigen Vaccine Biologics |
Yang Ming and Medigen Vaccine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and Medigen Vaccine
The main advantage of trading using opposite Yang Ming and Medigen Vaccine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, Medigen Vaccine 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 Medigen Vaccine will offset losses from the drop in Medigen Vaccine'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 |
| Medigen Vaccine vs. Evergreen Marine Corp | Medigen Vaccine vs. Yang Ming Marine | Medigen Vaccine vs. Eva Airways Corp | Medigen Vaccine vs. Wan Hai Lines |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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