Correlation Between WinMate Communication and Yageo Corp
Can any of the company-specific risk be diversified away by investing in both WinMate Communication 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 WinMate Communication and Yageo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinMate Communication INC and Yageo Corp, you can compare the effects of market volatilities on WinMate Communication 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 WinMate Communication with a short position of Yageo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and Yageo Corp.
Diversification Opportunities for WinMate Communication and Yageo Corp
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WinMate and Yageo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and Yageo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yageo Corp and WinMate Communication 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 WinMate Communication INC 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 WinMate Communication i.e., WinMate Communication and Yageo Corp go up and down completely randomly.
Pair Corralation between WinMate Communication and Yageo Corp
Assuming the 90 days trading horizon WinMate Communication INC is expected to generate 1.47 times more return on investment than Yageo Corp. However, WinMate Communication is 1.47 times more volatile than Yageo Corp. It trades about 0.13 of its potential returns per unit of risk. Yageo Corp is currently generating about 0.03 per unit of risk. If you would invest 15,400 in WinMate Communication INC on October 11, 2024 and sell it today you would earn a total of 1,050 from holding WinMate Communication INC or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinMate Communication INC vs. Yageo Corp
Performance |
| Timeline |
| WinMate Communication INC |
| Yageo Corp |
WinMate Communication and Yageo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and Yageo Corp
The main advantage of trading using opposite WinMate Communication and Yageo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication 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.| WinMate Communication vs. Advantech Co | WinMate Communication vs. IEI Integration Corp | WinMate Communication vs. Flytech Technology Co | WinMate Communication vs. Ennoconn Corp |
| Yageo Corp vs. WinMate Communication INC | Yageo Corp vs. Microelectronics Technology | Yageo Corp vs. Unitech Electronics Co | Yageo Corp vs. ABC Taiwan Electronics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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