Correlation Between Sunmax Biotechnology and Yieh United
Can any of the company-specific risk be diversified away by investing in both Sunmax Biotechnology and Yieh United 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 Sunmax Biotechnology and Yieh United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunmax Biotechnology Co and Yieh United Steel, you can compare the effects of market volatilities on Sunmax Biotechnology and Yieh United 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 Sunmax Biotechnology with a short position of Yieh United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunmax Biotechnology and Yieh United.
Diversification Opportunities for Sunmax Biotechnology and Yieh United
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunmax and Yieh is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sunmax Biotechnology Co and Yieh United Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yieh United Steel and Sunmax Biotechnology 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 Sunmax Biotechnology Co are associated (or correlated) with Yieh United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yieh United Steel has no effect on the direction of Sunmax Biotechnology i.e., Sunmax Biotechnology and Yieh United go up and down completely randomly.
Pair Corralation between Sunmax Biotechnology and Yieh United
Assuming the 90 days trading horizon Sunmax Biotechnology Co is expected to generate 1.37 times more return on investment than Yieh United. However, Sunmax Biotechnology is 1.37 times more volatile than Yieh United Steel. It trades about -0.01 of its potential returns per unit of risk. Yieh United Steel is currently generating about -0.02 per unit of risk. If you would invest 29,016 in Sunmax Biotechnology Co on September 1, 2024 and sell it today you would lose (1,216) from holding Sunmax Biotechnology Co or give up 4.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunmax Biotechnology Co vs. Yieh United Steel
Performance |
| Timeline |
| Sunmax Biotechnology |
| Yieh United Steel |
Sunmax Biotechnology and Yieh United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunmax Biotechnology and Yieh United
The main advantage of trading using opposite Sunmax Biotechnology and Yieh United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunmax Biotechnology position performs unexpectedly, Yieh United 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 Yieh United will offset losses from the drop in Yieh United's long position.| Sunmax Biotechnology vs. Medigen Vaccine Biologics | Sunmax Biotechnology vs. OBI Pharma | Sunmax Biotechnology vs. TaiMed Biologics | Sunmax Biotechnology vs. Tanvex BioPharma |
| Yieh United vs. Basso Industry Corp | Yieh United vs. Chung Hsin Electric Machinery | Yieh United vs. TYC Brother Industrial | Yieh United vs. TECO Electric Machinery |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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