Correlation Between YungShin Global and Coremax Corp
Can any of the company-specific risk be diversified away by investing in both YungShin Global and Coremax 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 Coremax 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 Coremax Corp, you can compare the effects of market volatilities on YungShin Global and Coremax 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 Coremax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of YungShin Global and Coremax Corp.
Diversification Opportunities for YungShin Global and Coremax Corp
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YungShin and Coremax is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding YungShin Global Holding and Coremax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coremax 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 Coremax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coremax Corp has no effect on the direction of YungShin Global i.e., YungShin Global and Coremax Corp go up and down completely randomly.
Pair Corralation between YungShin Global and Coremax Corp
Assuming the 90 days trading horizon YungShin Global Holding is expected to under-perform the Coremax Corp. But the stock apears to be less risky and, when comparing its historical volatility, YungShin Global Holding is 3.62 times less risky than Coremax Corp. The stock trades about -0.04 of its potential returns per unit of risk. The Coremax Corp is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 5,350 in Coremax Corp on November 27, 2024 and sell it today you would earn a total of 700.00 from holding Coremax Corp or generate 13.08% 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. Coremax Corp
Performance |
| Timeline |
| YungShin Global Holding |
| Coremax Corp |
YungShin Global and Coremax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YungShin Global and Coremax Corp
The main advantage of trading using opposite YungShin Global and Coremax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YungShin Global position performs unexpectedly, Coremax 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 Coremax Corp will offset losses from the drop in Coremax 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 |
| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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