Correlation Between Tainet Communication and Yieh United
Can any of the company-specific risk be diversified away by investing in both Tainet Communication 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 Tainet Communication and Yieh United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tainet Communication System and Yieh United Steel, you can compare the effects of market volatilities on Tainet Communication 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 Tainet Communication with a short position of Yieh United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tainet Communication and Yieh United.
Diversification Opportunities for Tainet Communication and Yieh United
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tainet and Yieh is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tainet Communication System 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 Tainet Communication 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 Tainet Communication System 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 Tainet Communication i.e., Tainet Communication and Yieh United go up and down completely randomly.
Pair Corralation between Tainet Communication and Yieh United
Assuming the 90 days trading horizon Tainet Communication System is expected to generate 1.77 times more return on investment than Yieh United. However, Tainet Communication is 1.77 times more volatile than Yieh United Steel. It trades about 0.05 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 5,140 in Tainet Communication System on August 29, 2024 and sell it today you would earn a total of 2,900 from holding Tainet Communication System or generate 56.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tainet Communication System vs. Yieh United Steel
Performance |
| Timeline |
| Tainet Communication |
| Yieh United Steel |
Tainet Communication and Yieh United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tainet Communication and Yieh United
The main advantage of trading using opposite Tainet Communication and Yieh United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tainet Communication 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.| Tainet Communication vs. Jia Jie Biomedical | Tainet Communication vs. FarGlory Hotel Co | Tainet Communication vs. Century Iron And | Tainet Communication vs. BenQ Medical Technology |
| Yieh United vs. WinMate Communication INC | Yieh United vs. Tung Thih Electronic | Yieh United vs. Top Union Electronics | Yieh United vs. Tainet Communication System |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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