Correlation Between Yem Chio and Sinher Technology
Can any of the company-specific risk be diversified away by investing in both Yem Chio and Sinher Technology 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 Sinher Technology 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 Sinher Technology, you can compare the effects of market volatilities on Yem Chio and Sinher Technology 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 Sinher Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yem Chio and Sinher Technology.
Diversification Opportunities for Yem Chio and Sinher Technology
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yem and Sinher is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yem Chio Co and Sinher Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinher Technology 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 Sinher Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinher Technology has no effect on the direction of Yem Chio i.e., Yem Chio and Sinher Technology go up and down completely randomly.
Pair Corralation between Yem Chio and Sinher Technology
Assuming the 90 days trading horizon Yem Chio Co is expected to generate 1.7 times more return on investment than Sinher Technology. However, Yem Chio is 1.7 times more volatile than Sinher Technology. It trades about 0.03 of its potential returns per unit of risk. Sinher Technology is currently generating about -0.02 per unit of risk. If you would invest 1,490 in Yem Chio Co on August 30, 2024 and sell it today you would earn a total of 315.00 from holding Yem Chio Co or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Yem Chio Co vs. Sinher Technology
Performance |
| Timeline |
| Yem Chio |
| Sinher Technology |
Yem Chio and Sinher Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yem Chio and Sinher Technology
The main advantage of trading using opposite Yem Chio and Sinher Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yem Chio position performs unexpectedly, Sinher Technology 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 Sinher Technology will offset losses from the drop in Sinher Technology's long position.| Yem Chio vs. USI Corp | Yem Chio vs. Asia Polymer Corp | Yem Chio vs. Sincere Navigation Corp | Yem Chio vs. Lealea Enterprise Co |
| Sinher Technology vs. Hsing Ta Cement | Sinher Technology vs. Capital Futures Corp | Sinher Technology vs. First Insurance Co | Sinher Technology vs. Yem Chio Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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