Correlation Between Holy Stone and Yageo Corp
Can any of the company-specific risk be diversified away by investing in both Holy Stone and Yageo Corp 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 Holy Stone and Yageo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holy Stone Enterprise and Yageo Corp, you can compare the effects of market volatilities on Holy Stone and Yageo Corp 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 Holy Stone with a short position of Yageo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holy Stone and Yageo Corp.
Diversification Opportunities for Holy Stone and Yageo Corp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Holy and Yageo is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Holy Stone Enterprise and Yageo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yageo Corp and Holy Stone 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 Holy Stone Enterprise are associated (or correlated) with Yageo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yageo Corp has no effect on the direction of Holy Stone i.e., Holy Stone and Yageo Corp go up and down completely randomly.
Pair Corralation between Holy Stone and Yageo Corp
Assuming the 90 days trading horizon Holy Stone Enterprise is expected to generate 0.34 times more return on investment than Yageo Corp. However, Holy Stone Enterprise is 2.94 times less risky than Yageo Corp. It trades about -0.03 of its potential returns per unit of risk. Yageo Corp is currently generating about -0.2 per unit of risk. If you would invest 9,120 in Holy Stone Enterprise on August 31, 2024 and sell it today you would lose (130.00) from holding Holy Stone Enterprise or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holy Stone Enterprise vs. Yageo Corp
Performance |
| Timeline |
| Holy Stone Enterprise |
| Yageo Corp |
Holy Stone and Yageo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holy Stone and Yageo Corp
The main advantage of trading using opposite Holy Stone and Yageo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holy Stone position performs unexpectedly, Yageo Corp 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 Yageo Corp will offset losses from the drop in Yageo Corp's long position.| Holy Stone vs. Walsin Technology Corp | Holy Stone vs. Yageo Corp | Holy Stone vs. Tripod Technology Corp | Holy Stone vs. Asia Optical Co |
| Yageo Corp vs. Asmedia Technology | Yageo Corp vs. Min Aik Technology | Yageo Corp vs. Amulaire Thermal Technology | Yageo Corp vs. Ichia Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |