Correlation Between YeaShin International and Chong Hong
Can any of the company-specific risk be diversified away by investing in both YeaShin International and Chong Hong 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 Chong Hong 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 Chong Hong Construction, you can compare the effects of market volatilities on YeaShin International and Chong Hong 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 Chong Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of YeaShin International and Chong Hong.
Diversification Opportunities for YeaShin International and Chong Hong
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YeaShin and Chong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding YeaShin International Developm and Chong Hong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chong Hong 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 Chong Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chong Hong Construction has no effect on the direction of YeaShin International i.e., YeaShin International and Chong Hong go up and down completely randomly.
Pair Corralation between YeaShin International and Chong Hong
Assuming the 90 days trading horizon YeaShin International Development is expected to generate 8.22 times more return on investment than Chong Hong. However, YeaShin International is 8.22 times more volatile than Chong Hong Construction. It trades about 0.09 of its potential returns per unit of risk. Chong Hong Construction is currently generating about 0.01 per unit of risk. If you would invest 2,870 in YeaShin International Development on August 30, 2024 and sell it today you would earn a total of 190.00 from holding YeaShin International Development or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YeaShin International Developm vs. Chong Hong Construction
Performance |
| Timeline |
| YeaShin International |
| Chong Hong Construction |
YeaShin International and Chong Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YeaShin International and Chong Hong
The main advantage of trading using opposite YeaShin International and Chong Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YeaShin International position performs unexpectedly, Chong Hong 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 Chong Hong will offset losses from the drop in Chong Hong'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 |
| Chong Hong vs. Tainan Spinning Co | Chong Hong vs. Carnival Industrial Corp | Chong Hong vs. Symtek Automation Asia | Chong Hong 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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