Correlation Between Touchstone International and Yoantion Industrial
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By analyzing existing cross correlation between Touchstone International Medical and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on Touchstone International and Yoantion Industrial 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 Touchstone International with a short position of Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Yoantion Industrial.
Diversification Opportunities for Touchstone International and Yoantion Industrial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Yoantion is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial and Touchstone 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 Touchstone International Medical are associated (or correlated) with Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of Touchstone International i.e., Touchstone International and Yoantion Industrial go up and down completely randomly.
Pair Corralation between Touchstone International and Yoantion Industrial
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 0.71 times more return on investment than Yoantion Industrial. However, Touchstone International Medical is 1.41 times less risky than Yoantion Industrial. It trades about 0.1 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.06 per unit of risk. If you would invest 1,452 in Touchstone International Medical on September 3, 2024 and sell it today you would earn a total of 490.00 from holding Touchstone International Medical or generate 33.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Yoantion Industrial IncLtd
Performance |
| Timeline |
| Touchstone International |
| Yoantion Industrial |
Touchstone International and Yoantion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Yoantion Industrial
The main advantage of trading using opposite Touchstone International and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial's long position.The idea behind Touchstone International Medical and Yoantion Industrial IncLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Yoantion Industrial vs. Touchstone International Medical | Yoantion Industrial vs. Cowealth Medical China | Yoantion Industrial vs. GKHT Medical Technology | Yoantion Industrial vs. Bangyan Technology 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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