Correlation Between Excelsior Medical and YungShin Global
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and YungShin Global 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 Excelsior Medical and YungShin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and YungShin Global Holding, you can compare the effects of market volatilities on Excelsior Medical and YungShin Global 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 Excelsior Medical with a short position of YungShin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and YungShin Global.
Diversification Opportunities for Excelsior Medical and YungShin Global
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Excelsior and YungShin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and YungShin Global Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YungShin Global Holding and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with YungShin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YungShin Global Holding has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and YungShin Global go up and down completely randomly.
Pair Corralation between Excelsior Medical and YungShin Global
Assuming the 90 days trading horizon Excelsior Medical Co is expected to under-perform the YungShin Global. But the stock apears to be less risky and, when comparing its historical volatility, Excelsior Medical Co is 1.36 times less risky than YungShin Global. The stock trades about 0.0 of its potential returns per unit of risk. The YungShin Global Holding is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,750 in YungShin Global Holding on January 25, 2025 and sell it today you would earn a total of 1,580 from holding YungShin Global Holding or generate 33.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. YungShin Global Holding
Performance |
| Timeline |
| Excelsior Medical |
| YungShin Global Holding |
Excelsior Medical and YungShin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and YungShin Global
The main advantage of trading using opposite Excelsior Medical and YungShin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, YungShin Global 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 YungShin Global will offset losses from the drop in YungShin Global's long position.| Excelsior Medical vs. Cathay Financial Holding | Excelsior Medical vs. Cathay Financial Holding | Excelsior Medical vs. Cathay Financial Holding | Excelsior Medical vs. Fubon Financial Holding |
| YungShin Global vs. Cathay Financial Holding | YungShin Global vs. Cathay Financial Holding | YungShin Global vs. Cathay Financial Holding | YungShin Global vs. Fubon Financial 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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