Correlation Between Tung Thih and Yusin Holding
Can any of the company-specific risk be diversified away by investing in both Tung Thih and Yusin Holding 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 Tung Thih and Yusin Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tung Thih Electronic and Yusin Holding Corp, you can compare the effects of market volatilities on Tung Thih and Yusin Holding 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 Tung Thih with a short position of Yusin Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Thih and Yusin Holding.
Diversification Opportunities for Tung Thih and Yusin Holding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tung and Yusin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tung Thih Electronic and Yusin Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yusin Holding Corp and Tung Thih 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 Tung Thih Electronic are associated (or correlated) with Yusin Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yusin Holding Corp has no effect on the direction of Tung Thih i.e., Tung Thih and Yusin Holding go up and down completely randomly.
Pair Corralation between Tung Thih and Yusin Holding
Assuming the 90 days trading horizon Tung Thih Electronic is expected to generate 35.89 times more return on investment than Yusin Holding. However, Tung Thih is 35.89 times more volatile than Yusin Holding Corp. It trades about 0.06 of its potential returns per unit of risk. Yusin Holding Corp is currently generating about 0.06 per unit of risk. If you would invest 12,989 in Tung Thih Electronic on September 2, 2024 and sell it today you would lose (2,989) from holding Tung Thih Electronic or give up 23.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tung Thih Electronic vs. Yusin Holding Corp
Performance |
| Timeline |
| Tung Thih Electronic |
| Yusin Holding Corp |
Tung Thih and Yusin Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tung Thih and Yusin Holding
The main advantage of trading using opposite Tung Thih and Yusin Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Thih position performs unexpectedly, Yusin Holding 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 Yusin Holding will offset losses from the drop in Yusin Holding's long position.| Tung Thih vs. Hota Industrial Mfg | Tung Thih vs. BizLink Holding | Tung Thih vs. Cub Elecparts | Tung Thih vs. Hu Lane Associate |
| Yusin Holding vs. Hota Industrial Mfg | Yusin Holding vs. BizLink Holding | Yusin Holding vs. Cub Elecparts | Yusin Holding vs. Hu Lane Associate |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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