Correlation Between YungShin Global and Apex Biotechnology
Can any of the company-specific risk be diversified away by investing in both YungShin Global and Apex Biotechnology 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 YungShin Global and Apex Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YungShin Global Holding and Apex Biotechnology Corp, you can compare the effects of market volatilities on YungShin Global and Apex Biotechnology 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 YungShin Global with a short position of Apex Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of YungShin Global and Apex Biotechnology.
Diversification Opportunities for YungShin Global and Apex Biotechnology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YungShin and Apex is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding YungShin Global Holding and Apex Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Biotechnology Corp and YungShin Global 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 YungShin Global Holding are associated (or correlated) with Apex Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Biotechnology Corp has no effect on the direction of YungShin Global i.e., YungShin Global and Apex Biotechnology go up and down completely randomly.
Pair Corralation between YungShin Global and Apex Biotechnology
Assuming the 90 days trading horizon YungShin Global Holding is expected to generate 0.61 times more return on investment than Apex Biotechnology. However, YungShin Global Holding is 1.64 times less risky than Apex Biotechnology. It trades about 0.07 of its potential returns per unit of risk. Apex Biotechnology Corp is currently generating about 0.02 per unit of risk. If you would invest 4,325 in YungShin Global Holding on September 12, 2024 and sell it today you would earn a total of 1,195 from holding YungShin Global Holding or generate 27.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YungShin Global Holding vs. Apex Biotechnology Corp
Performance |
| Timeline |
| YungShin Global Holding |
| Apex Biotechnology Corp |
YungShin Global and Apex Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YungShin Global and Apex Biotechnology
The main advantage of trading using opposite YungShin Global and Apex Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YungShin Global position performs unexpectedly, Apex Biotechnology 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 Apex Biotechnology will offset losses from the drop in Apex Biotechnology's long position.| YungShin Global vs. Apex Biotechnology Corp | YungShin Global vs. Ruentex Development Co | YungShin Global vs. WiseChip Semiconductor | YungShin Global vs. Novatek Microelectronics Corp |
| Apex Biotechnology vs. Ruentex Development Co | Apex Biotechnology vs. WiseChip Semiconductor | Apex Biotechnology vs. Novatek Microelectronics Corp | Apex Biotechnology vs. Leader 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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