Correlation Between YungShin Global and Kee Tai
Can any of the company-specific risk be diversified away by investing in both YungShin Global and Kee Tai 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 Kee Tai 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 Kee Tai Properties, you can compare the effects of market volatilities on YungShin Global and Kee Tai 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 Kee Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of YungShin Global and Kee Tai.
Diversification Opportunities for YungShin Global and Kee Tai
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between YungShin and Kee is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding YungShin Global Holding and Kee Tai Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kee Tai Properties 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 Kee Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kee Tai Properties has no effect on the direction of YungShin Global i.e., YungShin Global and Kee Tai go up and down completely randomly.
Pair Corralation between YungShin Global and Kee Tai
Assuming the 90 days trading horizon YungShin Global is expected to generate 1.26 times less return on investment than Kee Tai. But when comparing it to its historical volatility, YungShin Global Holding is 1.57 times less risky than Kee Tai. It trades about 0.05 of its potential returns per unit of risk. Kee Tai Properties is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,210 in Kee Tai Properties on September 2, 2024 and sell it today you would earn a total of 405.00 from holding Kee Tai Properties or generate 33.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YungShin Global Holding vs. Kee Tai Properties
Performance |
| Timeline |
| YungShin Global Holding |
| Kee Tai Properties |
YungShin Global and Kee Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YungShin Global and Kee Tai
The main advantage of trading using opposite YungShin Global and Kee Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YungShin Global position performs unexpectedly, Kee Tai 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 Kee Tai will offset losses from the drop in Kee Tai's long position.| YungShin Global vs. Sinphar Pharmaceutical Co | YungShin Global vs. Phytohealth Corp | YungShin Global vs. Excelsior Medical Co | YungShin Global vs. Abnova Taiwan Corp |
| Kee Tai vs. Ruentex Development Co | Kee Tai vs. CTCI Corp | Kee Tai vs. Information Technology Total | Kee Tai vs. Ennoconn Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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