Correlation Between Yem Chio and Shuttle
Can any of the company-specific risk be diversified away by investing in both Yem Chio and Shuttle 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 Yem Chio and Shuttle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yem Chio Co and Shuttle, you can compare the effects of market volatilities on Yem Chio and Shuttle 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 Yem Chio with a short position of Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yem Chio and Shuttle.
Diversification Opportunities for Yem Chio and Shuttle
Good diversification
The 3 months correlation between Yem and Shuttle is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Yem Chio Co and Shuttle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuttle and Yem Chio 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 Yem Chio Co are associated (or correlated) with Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuttle has no effect on the direction of Yem Chio i.e., Yem Chio and Shuttle go up and down completely randomly.
Pair Corralation between Yem Chio and Shuttle
Assuming the 90 days trading horizon Yem Chio is expected to generate 3.74 times less return on investment than Shuttle. But when comparing it to its historical volatility, Yem Chio Co is 1.84 times less risky than Shuttle. It trades about 0.03 of its potential returns per unit of risk. Shuttle is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,185 in Shuttle on October 14, 2024 and sell it today you would earn a total of 800.00 from holding Shuttle or generate 67.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yem Chio Co vs. Shuttle
Performance |
| Timeline |
| Yem Chio |
| Shuttle |
Yem Chio and Shuttle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yem Chio and Shuttle
The main advantage of trading using opposite Yem Chio and Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yem Chio position performs unexpectedly, Shuttle 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 Shuttle will offset losses from the drop in Shuttle's long position.| Yem Chio vs. Hota Industrial Mfg | Yem Chio vs. Sinbon Electronics Co | Yem Chio vs. Tong Hsing Electronic | Yem Chio vs. Flexium Interconnect |
| Shuttle vs. Clevo Co | Shuttle vs. Gigastorage Corp | Shuttle vs. KYE Systems Corp | Shuttle vs. AVerMedia Technologies |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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