Correlation Between Asia Tech and Yeou Yih
Can any of the company-specific risk be diversified away by investing in both Asia Tech and Yeou Yih 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 Asia Tech and Yeou Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Tech Image and Yeou Yih Steel, you can compare the effects of market volatilities on Asia Tech and Yeou Yih 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 Asia Tech with a short position of Yeou Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Tech and Yeou Yih.
Diversification Opportunities for Asia Tech and Yeou Yih
Excellent diversification
The 3 months correlation between Asia and Yeou is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Asia Tech Image and Yeou Yih Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yeou Yih Steel and Asia Tech 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 Asia Tech Image are associated (or correlated) with Yeou Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yeou Yih Steel has no effect on the direction of Asia Tech i.e., Asia Tech and Yeou Yih go up and down completely randomly.
Pair Corralation between Asia Tech and Yeou Yih
Assuming the 90 days trading horizon Asia Tech Image is expected to generate 4.87 times more return on investment than Yeou Yih. However, Asia Tech is 4.87 times more volatile than Yeou Yih Steel. It trades about 0.04 of its potential returns per unit of risk. Yeou Yih Steel is currently generating about -0.28 per unit of risk. If you would invest 10,950 in Asia Tech Image on October 24, 2024 and sell it today you would earn a total of 150.00 from holding Asia Tech Image or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asia Tech Image vs. Yeou Yih Steel
Performance |
| Timeline |
| Asia Tech Image |
| Yeou Yih Steel |
Asia Tech and Yeou Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Tech and Yeou Yih
The main advantage of trading using opposite Asia Tech and Yeou Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Tech position performs unexpectedly, Yeou Yih 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 Yeou Yih will offset losses from the drop in Yeou Yih's long position.| Asia Tech vs. Yeou Yih Steel | Asia Tech vs. Chinese Gamer International | Asia Tech vs. Evergreen Steel Corp | Asia Tech vs. Amulaire Thermal Technology |
| Yeou Yih vs. Bright Led Electronics | Yeou Yih vs. GameSparcs Co | Yeou Yih vs. Thinking Electronic Industrial | Yeou Yih vs. Chinese Gamer International |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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