Correlation Between RF Materials and Y Optics
Can any of the company-specific risk be diversified away by investing in both RF Materials and Y Optics 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 RF Materials and Y Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RF Materials Co and Y Optics Manufacture Co, you can compare the effects of market volatilities on RF Materials and Y Optics 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 RF Materials with a short position of Y Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of RF Materials and Y Optics.
Diversification Opportunities for RF Materials and Y Optics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 327260 and 066430 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding RF Materials Co and Y Optics Manufacture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y Optics Manufacture and RF Materials 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 RF Materials Co are associated (or correlated) with Y Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y Optics Manufacture has no effect on the direction of RF Materials i.e., RF Materials and Y Optics go up and down completely randomly.
Pair Corralation between RF Materials and Y Optics
Assuming the 90 days trading horizon RF Materials Co is expected to under-perform the Y Optics. In addition to that, RF Materials is 1.32 times more volatile than Y Optics Manufacture Co. It trades about -0.04 of its total potential returns per unit of risk. Y Optics Manufacture Co is currently generating about -0.02 per unit of volatility. If you would invest 65,300 in Y Optics Manufacture Co on November 3, 2024 and sell it today you would lose (13,100) from holding Y Optics Manufacture Co or give up 20.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
RF Materials Co vs. Y Optics Manufacture Co
Performance |
| Timeline |
| RF Materials |
| Y Optics Manufacture |
RF Materials and Y Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RF Materials and Y Optics
The main advantage of trading using opposite RF Materials and Y Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RF Materials position performs unexpectedly, Y Optics 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 Y Optics will offset losses from the drop in Y Optics' long position.| RF Materials vs. ChipsMedia | RF Materials vs. YG Entertainment | RF Materials vs. Jeong Moon Information | RF Materials vs. T3 Entertainment Co |
| Y Optics vs. SBI Investment KOREA | Y Optics vs. Bosung Power Technology | Y Optics vs. Puloon Technology | Y Optics vs. Eugene Technology CoLtd |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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