Correlation Between Yuan High and Celxpert Energy
Can any of the company-specific risk be diversified away by investing in both Yuan High and Celxpert Energy 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 Yuan High and Celxpert Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuan High Tech Development and Celxpert Energy, you can compare the effects of market volatilities on Yuan High and Celxpert Energy 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 Yuan High with a short position of Celxpert Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan High and Celxpert Energy.
Diversification Opportunities for Yuan High and Celxpert Energy
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuan and Celxpert is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Yuan High Tech Development and Celxpert Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celxpert Energy and Yuan High 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 Yuan High Tech Development are associated (or correlated) with Celxpert Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celxpert Energy has no effect on the direction of Yuan High i.e., Yuan High and Celxpert Energy go up and down completely randomly.
Pair Corralation between Yuan High and Celxpert Energy
Assuming the 90 days trading horizon Yuan High Tech Development is expected to generate 1.56 times more return on investment than Celxpert Energy. However, Yuan High is 1.56 times more volatile than Celxpert Energy. It trades about 0.07 of its potential returns per unit of risk. Celxpert Energy is currently generating about 0.02 per unit of risk. If you would invest 6,889 in Yuan High Tech Development on September 14, 2024 and sell it today you would earn a total of 8,511 from holding Yuan High Tech Development or generate 123.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Yuan High Tech Development vs. Celxpert Energy
Performance |
| Timeline |
| Yuan High Tech |
| Celxpert Energy |
Yuan High and Celxpert Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan High and Celxpert Energy
The main advantage of trading using opposite Yuan High and Celxpert Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan High position performs unexpectedly, Celxpert Energy 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 Celxpert Energy will offset losses from the drop in Celxpert Energy's long position.| Yuan High vs. AU Optronics | Yuan High vs. Innolux Corp | Yuan High vs. Ruentex Development Co | Yuan High vs. WiseChip Semiconductor |
| Celxpert Energy vs. Easywell Biomedicals | Celxpert Energy vs. BenQ Medical Technology | Celxpert Energy vs. Yuan High Tech Development | Celxpert Energy vs. Materials Analysis Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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