Correlation Between YungShin Global and Phytohealth Corp
Can any of the company-specific risk be diversified away by investing in both YungShin Global and Phytohealth 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 YungShin Global and Phytohealth Corp 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 Phytohealth Corp, you can compare the effects of market volatilities on YungShin Global and Phytohealth 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 YungShin Global with a short position of Phytohealth Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of YungShin Global and Phytohealth Corp.
Diversification Opportunities for YungShin Global and Phytohealth Corp
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YungShin and Phytohealth is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding YungShin Global Holding and Phytohealth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phytohealth 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 Phytohealth Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phytohealth Corp has no effect on the direction of YungShin Global i.e., YungShin Global and Phytohealth Corp go up and down completely randomly.
Pair Corralation between YungShin Global and Phytohealth Corp
Assuming the 90 days trading horizon YungShin Global Holding is expected to under-perform the Phytohealth Corp. But the stock apears to be less risky and, when comparing its historical volatility, YungShin Global Holding is 1.09 times less risky than Phytohealth Corp. The stock trades about -0.04 of its potential returns per unit of risk. The Phytohealth Corp is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,625 in Phytohealth Corp on November 27, 2024 and sell it today you would earn a total of 85.00 from holding Phytohealth Corp or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YungShin Global Holding vs. Phytohealth Corp
Performance |
| Timeline |
| YungShin Global Holding |
| Phytohealth Corp |
YungShin Global and Phytohealth Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YungShin Global and Phytohealth Corp
The main advantage of trading using opposite YungShin Global and Phytohealth Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YungShin Global position performs unexpectedly, Phytohealth 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 Phytohealth Corp will offset losses from the drop in Phytohealth Corp'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 |
| Phytohealth Corp vs. CHC Healthcare Group | Phytohealth Corp vs. GenMont Biotech | Phytohealth Corp vs. Sinphar Pharmaceutical Co | Phytohealth Corp vs. Abnova Taiwan 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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