Correlation Between Coremax Corp and YungShin Global
Can any of the company-specific risk be diversified away by investing in both Coremax Corp and YungShin Global 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 Coremax Corp and YungShin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coremax Corp and YungShin Global Holding, you can compare the effects of market volatilities on Coremax Corp and YungShin Global 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 Coremax Corp with a short position of YungShin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coremax Corp and YungShin Global.
Diversification Opportunities for Coremax Corp and YungShin Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coremax and YungShin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Coremax Corp and YungShin Global Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YungShin Global Holding and Coremax Corp 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 Coremax Corp are associated (or correlated) with YungShin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YungShin Global Holding has no effect on the direction of Coremax Corp i.e., Coremax Corp and YungShin Global go up and down completely randomly.
Pair Corralation between Coremax Corp and YungShin Global
Assuming the 90 days trading horizon Coremax Corp is expected to generate 3.62 times more return on investment than YungShin Global. However, Coremax Corp is 3.62 times more volatile than YungShin Global Holding. It trades about 0.29 of its potential returns per unit of risk. YungShin Global Holding is currently generating about -0.04 per unit of risk. If you would invest 5,350 in Coremax Corp on November 27, 2024 and sell it today you would earn a total of 700.00 from holding Coremax Corp or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coremax Corp vs. YungShin Global Holding
Performance |
| Timeline |
| Coremax Corp |
| YungShin Global Holding |
Coremax Corp and YungShin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coremax Corp and YungShin Global
The main advantage of trading using opposite Coremax Corp and YungShin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coremax Corp position performs unexpectedly, YungShin Global 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 YungShin Global will offset losses from the drop in YungShin Global's long position.| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
| YungShin Global vs. Sinphar Pharmaceutical Co | YungShin Global vs. Phytohealth Corp | YungShin Global vs. Excelsior Medical Co | YungShin Global vs. Abnova Taiwan 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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