Correlation Between YeaShin International and JSL Construction
Can any of the company-specific risk be diversified away by investing in both YeaShin International and JSL Construction 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 YeaShin International and JSL Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YeaShin International Development and JSL Construction Development, you can compare the effects of market volatilities on YeaShin International and JSL Construction 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 YeaShin International with a short position of JSL Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of YeaShin International and JSL Construction.
Diversification Opportunities for YeaShin International and JSL Construction
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YeaShin and JSL is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding YeaShin International Developm and JSL Construction Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSL Construction Dev and YeaShin International 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 YeaShin International Development are associated (or correlated) with JSL Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSL Construction Dev has no effect on the direction of YeaShin International i.e., YeaShin International and JSL Construction go up and down completely randomly.
Pair Corralation between YeaShin International and JSL Construction
Assuming the 90 days trading horizon YeaShin International Development is expected to generate 3.03 times more return on investment than JSL Construction. However, YeaShin International is 3.03 times more volatile than JSL Construction Development. It trades about 0.05 of its potential returns per unit of risk. JSL Construction Development is currently generating about -0.08 per unit of risk. If you would invest 3,850 in YeaShin International Development on August 30, 2024 and sell it today you would lose (790.00) from holding YeaShin International Development or give up 20.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YeaShin International Developm vs. JSL Construction Development
Performance |
| Timeline |
| YeaShin International |
| JSL Construction Dev |
YeaShin International and JSL Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YeaShin International and JSL Construction
The main advantage of trading using opposite YeaShin International and JSL Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YeaShin International position performs unexpectedly, JSL Construction 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 JSL Construction will offset losses from the drop in JSL Construction's long position.| YeaShin International vs. Sino Horizon Holdings | YeaShin International vs. Run Long Construction | YeaShin International vs. Chong Hong Construction | YeaShin International vs. Sinyi Realty |
| JSL Construction vs. Tainan Spinning Co | JSL Construction vs. Carnival Industrial Corp | JSL Construction vs. Symtek Automation Asia | JSL Construction vs. CTCI 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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