Correlation Between Aspeed Technology and Yungshin Construction
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology 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 Aspeed Technology and Yungshin Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and Yungshin Construction Development, you can compare the effects of market volatilities on Aspeed Technology 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 Aspeed Technology with a short position of Yungshin Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and Yungshin Construction.
Diversification Opportunities for Aspeed Technology and Yungshin Construction
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aspeed and Yungshin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology and Yungshin Construction Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yungshin Construction and Aspeed Technology 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 Aspeed Technology 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 Aspeed Technology i.e., Aspeed Technology and Yungshin Construction go up and down completely randomly.
Pair Corralation between Aspeed Technology and Yungshin Construction
Assuming the 90 days trading horizon Aspeed Technology is expected to generate 2.11 times less return on investment than Yungshin Construction. In addition to that, Aspeed Technology is 1.36 times more volatile than Yungshin Construction Development. It trades about 0.03 of its total potential returns per unit of risk. Yungshin Construction Development is currently generating about 0.09 per unit of volatility. If you would invest 5,226 in Yungshin Construction Development on November 19, 2024 and sell it today you would earn a total of 8,724 from holding Yungshin Construction Development or generate 166.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. Yungshin Construction Developm
Performance |
| Timeline |
| Aspeed Technology |
| Yungshin Construction |
Aspeed Technology and Yungshin Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and Yungshin Construction
The main advantage of trading using opposite Aspeed Technology and Yungshin Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology 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.| Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Silergy Corp | Aspeed Technology vs. Parade Technologies | Aspeed Technology vs. Wiwynn Corp |
| Yungshin Construction vs. SciVision Biotech | Yungshin Construction vs. ANJI Technology Co | Yungshin Construction vs. CHC Healthcare Group | Yungshin Construction vs. Healthconn 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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