Correlation Between YeaShin International and Yungshin Construction
Can any of the company-specific risk be diversified away by investing in both YeaShin International and Yungshin 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 Yungshin 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 Yungshin Construction Development, you can compare the effects of market volatilities on YeaShin International and Yungshin 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 Yungshin Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of YeaShin International and Yungshin Construction.
Diversification Opportunities for YeaShin International and Yungshin Construction
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between YeaShin and Yungshin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding YeaShin International Developm and Yungshin Construction Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yungshin Construction 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 Yungshin Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yungshin Construction has no effect on the direction of YeaShin International i.e., YeaShin International and Yungshin Construction go up and down completely randomly.
Pair Corralation between YeaShin International and Yungshin Construction
Assuming the 90 days trading horizon YeaShin International is expected to generate 2.03 times less return on investment than Yungshin Construction. But when comparing it to its historical volatility, YeaShin International Development is 1.47 times less risky than Yungshin Construction. It trades about 0.44 of its potential returns per unit of risk. Yungshin Construction Development is currently generating about 0.61 of returns per unit of risk over similar time horizon. If you would invest 12,550 in Yungshin Construction Development on November 28, 2024 and sell it today you would earn a total of 3,000 from holding Yungshin Construction Development or generate 23.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
YeaShin International Developm vs. Yungshin Construction Developm
Performance |
| Timeline |
| YeaShin International |
| Yungshin Construction |
YeaShin International and Yungshin Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YeaShin International and Yungshin Construction
The main advantage of trading using opposite YeaShin International and Yungshin Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YeaShin International position performs unexpectedly, Yungshin 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 Yungshin Construction will offset losses from the drop in Yungshin Construction's long position.| YeaShin International vs. Rich Development Co | YeaShin International vs. Synmosa Biopharma | YeaShin International vs. Fulltech Fiber Glass | YeaShin International vs. Gloria Material Technology |
| Yungshin Construction vs. Fubon Taiwan Technology | Yungshin Construction vs. Shinkong Insurance Co | Yungshin Construction vs. Logah Technology Corp | Yungshin Construction vs. First Insurance Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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