Correlation Between Chong Hong and YeaShin International
Can any of the company-specific risk be diversified away by investing in both Chong Hong and YeaShin International 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 Chong Hong and YeaShin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chong Hong Construction and YeaShin International Development, you can compare the effects of market volatilities on Chong Hong and YeaShin International 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 Chong Hong with a short position of YeaShin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chong Hong and YeaShin International.
Diversification Opportunities for Chong Hong and YeaShin International
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chong and YeaShin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Chong Hong Construction and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin International and Chong Hong 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 Chong Hong Construction are associated (or correlated) with YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of Chong Hong i.e., Chong Hong and YeaShin International go up and down completely randomly.
Pair Corralation between Chong Hong and YeaShin International
Assuming the 90 days trading horizon Chong Hong Construction is expected to generate 1.08 times more return on investment than YeaShin International. However, Chong Hong is 1.08 times more volatile than YeaShin International Development. It trades about 0.04 of its potential returns per unit of risk. YeaShin International Development is currently generating about 0.02 per unit of risk. If you would invest 7,480 in Chong Hong Construction on August 26, 2024 and sell it today you would earn a total of 1,520 from holding Chong Hong Construction or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chong Hong Construction vs. YeaShin International Developm
Performance |
| Timeline |
| Chong Hong Construction |
| YeaShin International |
Chong Hong and YeaShin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chong Hong and YeaShin International
The main advantage of trading using opposite Chong Hong and YeaShin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chong Hong position performs unexpectedly, YeaShin International 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 YeaShin International will offset losses from the drop in YeaShin International's long position.| Chong Hong vs. Huaku Development Co | Chong Hong vs. Farglory Land Development | Chong Hong vs. Highwealth Construction Corp | Chong Hong vs. Ruentex Development Co |
| YeaShin International vs. Run Long Construction | YeaShin International vs. Chong Hong Construction | YeaShin International vs. JSL Construction Development | YeaShin International vs. Delpha Construction 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |