Correlation Between BenQ Medical and Yeou Yih
Can any of the company-specific risk be diversified away by investing in both BenQ Medical and Yeou Yih 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 BenQ Medical and Yeou Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Medical Technology and Yeou Yih Steel, you can compare the effects of market volatilities on BenQ Medical and Yeou Yih 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 BenQ Medical with a short position of Yeou Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Medical and Yeou Yih.
Diversification Opportunities for BenQ Medical and Yeou Yih
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BenQ and Yeou is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Medical Technology and Yeou Yih Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yeou Yih Steel and BenQ 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 BenQ Medical Technology are associated (or correlated) with Yeou Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yeou Yih Steel has no effect on the direction of BenQ Medical i.e., BenQ Medical and Yeou Yih go up and down completely randomly.
Pair Corralation between BenQ Medical and Yeou Yih
Assuming the 90 days trading horizon BenQ Medical Technology is expected to under-perform the Yeou Yih. In addition to that, BenQ Medical is 1.61 times more volatile than Yeou Yih Steel. It trades about -0.05 of its total potential returns per unit of risk. Yeou Yih Steel is currently generating about -0.01 per unit of volatility. If you would invest 1,540 in Yeou Yih Steel on September 13, 2024 and sell it today you would lose (5.00) from holding Yeou Yih Steel or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BenQ Medical Technology vs. Yeou Yih Steel
Performance |
| Timeline |
| BenQ Medical Technology |
| Yeou Yih Steel |
BenQ Medical and Yeou Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenQ Medical and Yeou Yih
The main advantage of trading using opposite BenQ Medical and Yeou Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Medical position performs unexpectedly, Yeou Yih 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 Yeou Yih will offset losses from the drop in Yeou Yih's long position.| BenQ Medical vs. Universal Vision Biotechnology | BenQ Medical vs. Excelsior Medical Co | BenQ Medical vs. Pacific Hospital Supply | BenQ Medical vs. Ruentex Development Co |
| Yeou Yih vs. BenQ Medical Technology | Yeou Yih vs. Cowealth Medical Holding | Yeou Yih vs. Jia Jie Biomedical | Yeou Yih vs. Taiwan Speciality Chemicals |
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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