Correlation Between Yang Ming and O TA
Can any of the company-specific risk be diversified away by investing in both Yang Ming and O TA 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 O TA 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 O TA Precision Industry, you can compare the effects of market volatilities on Yang Ming and O TA 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 O TA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yang Ming and O TA.
Diversification Opportunities for Yang Ming and O TA
Excellent diversification
The 3 months correlation between Yang and 8924 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Yang Ming Marine and O TA Precision Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O TA Precision 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 O TA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O TA Precision has no effect on the direction of Yang Ming i.e., Yang Ming and O TA go up and down completely randomly.
Pair Corralation between Yang Ming and O TA
Assuming the 90 days trading horizon Yang Ming Marine is expected to generate 4.47 times more return on investment than O TA. However, Yang Ming is 4.47 times more volatile than O TA Precision Industry. It trades about 0.13 of its potential returns per unit of risk. O TA Precision Industry is currently generating about -0.14 per unit of risk. If you would invest 6,760 in Yang Ming Marine on August 25, 2024 and sell it today you would earn a total of 990.00 from holding Yang Ming Marine or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yang Ming Marine vs. O TA Precision Industry
Performance |
| Timeline |
| Yang Ming Marine |
| O TA Precision |
Yang Ming and O TA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yang Ming and O TA
The main advantage of trading using opposite Yang Ming and O TA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yang Ming position performs unexpectedly, O TA 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 O TA will offset losses from the drop in O TA's long position.| Yang Ming vs. Sunny Friend Environmental | Yang Ming vs. TTET Union Corp | Yang Ming vs. ECOVE Environment Corp | Yang Ming vs. Yulon Finance Corp |
| O TA vs. Advanced International Multitech | O TA vs. Dynamic Precision Industry | O TA vs. Greatek Electronics | O TA vs. Qisda 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |