Correlation Between Ying Han and Globaltek Fabrication
Can any of the company-specific risk be diversified away by investing in both Ying Han and Globaltek Fabrication 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 Ying Han and Globaltek Fabrication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ying Han Technology and Globaltek Fabrication Co, you can compare the effects of market volatilities on Ying Han and Globaltek Fabrication 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 Ying Han with a short position of Globaltek Fabrication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ying Han and Globaltek Fabrication.
Diversification Opportunities for Ying Han and Globaltek Fabrication
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ying and Globaltek is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ying Han Technology and Globaltek Fabrication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globaltek Fabrication and Ying Han 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 Ying Han Technology are associated (or correlated) with Globaltek Fabrication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globaltek Fabrication has no effect on the direction of Ying Han i.e., Ying Han and Globaltek Fabrication go up and down completely randomly.
Pair Corralation between Ying Han and Globaltek Fabrication
Assuming the 90 days trading horizon Ying Han Technology is expected to generate 2.39 times more return on investment than Globaltek Fabrication. However, Ying Han is 2.39 times more volatile than Globaltek Fabrication Co. It trades about 0.03 of its potential returns per unit of risk. Globaltek Fabrication Co is currently generating about -0.27 per unit of risk. If you would invest 6,450 in Ying Han Technology on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Ying Han Technology or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ying Han Technology vs. Globaltek Fabrication Co
Performance |
| Timeline |
| Ying Han Technology |
| Globaltek Fabrication |
Ying Han and Globaltek Fabrication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ying Han and Globaltek Fabrication
The main advantage of trading using opposite Ying Han and Globaltek Fabrication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ying Han position performs unexpectedly, Globaltek Fabrication 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 Globaltek Fabrication will offset losses from the drop in Globaltek Fabrication's long position.| Ying Han vs. Golden Friends | Ying Han vs. Sunonwealth Electric Machine | Ying Han vs. Rechi Precision Co | Ying Han vs. Fittech Co |
| Globaltek Fabrication vs. SCI Pharmtech | Globaltek Fabrication vs. ZongTai Real Estate | Globaltek Fabrication vs. Ying Han Technology | Globaltek Fabrication vs. Tripod Technology Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |