Correlation Between Avalue Technology and Yeou Yih
Can any of the company-specific risk be diversified away by investing in both Avalue Technology and Yeou Yih 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 Avalue Technology and Yeou Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avalue Technology and Yeou Yih Steel, you can compare the effects of market volatilities on Avalue Technology and Yeou Yih 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 Avalue Technology with a short position of Yeou Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalue Technology and Yeou Yih.
Diversification Opportunities for Avalue Technology and Yeou Yih
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Avalue and Yeou is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Avalue Technology and Yeou Yih Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yeou Yih Steel and Avalue Technology 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 Avalue Technology are associated (or correlated) with Yeou Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yeou Yih Steel has no effect on the direction of Avalue Technology i.e., Avalue Technology and Yeou Yih go up and down completely randomly.
Pair Corralation between Avalue Technology and Yeou Yih
Assuming the 90 days trading horizon Avalue Technology is expected to under-perform the Yeou Yih. In addition to that, Avalue Technology is 2.22 times more volatile than Yeou Yih Steel. It trades about -0.07 of its total potential returns per unit of risk. Yeou Yih Steel is currently generating about -0.09 per unit of volatility. If you would invest 1,560 in Yeou Yih Steel on August 30, 2024 and sell it today you would lose (20.00) from holding Yeou Yih Steel or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Avalue Technology vs. Yeou Yih Steel
Performance |
| Timeline |
| Avalue Technology |
| Yeou Yih Steel |
Avalue Technology and Yeou Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avalue Technology and Yeou Yih
The main advantage of trading using opposite Avalue Technology and Yeou Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalue Technology position performs unexpectedly, Yeou Yih 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 Yeou Yih will offset losses from the drop in Yeou Yih's long position.| Avalue Technology vs. International CSRC Investment | Avalue Technology vs. Farglory FTZ Investment | Avalue Technology vs. ReaLy Development Construction | Avalue Technology vs. Chung Hsin Electric Machinery |
| Yeou Yih vs. Landis Taipei Hotel | Yeou Yih vs. Energenesis Biomedical Co | Yeou Yih vs. Great China Metal | Yeou Yih vs. Arbor Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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