Correlation Between YungShin Global and Capital Futures
Can any of the company-specific risk be diversified away by investing in both YungShin Global and Capital Futures 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 Capital Futures 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 Capital Futures Corp, you can compare the effects of market volatilities on YungShin Global and Capital Futures 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 Capital Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of YungShin Global and Capital Futures.
Diversification Opportunities for YungShin Global and Capital Futures
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YungShin and Capital is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding YungShin Global Holding and Capital Futures Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Futures 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 Capital Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Futures Corp has no effect on the direction of YungShin Global i.e., YungShin Global and Capital Futures go up and down completely randomly.
Pair Corralation between YungShin Global and Capital Futures
Assuming the 90 days trading horizon YungShin Global Holding is expected to generate 1.13 times more return on investment than Capital Futures. However, YungShin Global is 1.13 times more volatile than Capital Futures Corp. It trades about 0.0 of its potential returns per unit of risk. Capital Futures Corp is currently generating about -0.02 per unit of risk. If you would invest 5,530 in YungShin Global Holding on November 28, 2024 and sell it today you would lose (100.00) from holding YungShin Global Holding or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YungShin Global Holding vs. Capital Futures Corp
Performance |
| Timeline |
| YungShin Global Holding |
| Capital Futures Corp |
YungShin Global and Capital Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YungShin Global and Capital Futures
The main advantage of trading using opposite YungShin Global and Capital Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YungShin Global position performs unexpectedly, Capital Futures 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 Capital Futures will offset losses from the drop in Capital Futures' 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 |
| Capital Futures vs. Hung Sheng Construction | Capital Futures vs. Mercuries Life Insurance | Capital Futures vs. Sinher Technology | Capital Futures vs. YungShin Global Holding |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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