Correlation Between Great Computer and Yuan High
Can any of the company-specific risk be diversified away by investing in both Great Computer and Yuan High 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 Great Computer and Yuan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Computer and Yuan High Tech Development, you can compare the effects of market volatilities on Great Computer and Yuan High 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 Great Computer with a short position of Yuan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Computer and Yuan High.
Diversification Opportunities for Great Computer and Yuan High
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Great and Yuan is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Great Computer and Yuan High Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan High Tech and Great Computer 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 Great Computer are associated (or correlated) with Yuan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan High Tech has no effect on the direction of Great Computer i.e., Great Computer and Yuan High go up and down completely randomly.
Pair Corralation between Great Computer and Yuan High
Assuming the 90 days trading horizon Great Computer is expected to generate 2.68 times more return on investment than Yuan High. However, Great Computer is 2.68 times more volatile than Yuan High Tech Development. It trades about 0.14 of its potential returns per unit of risk. Yuan High Tech Development is currently generating about -0.1 per unit of risk. If you would invest 1,680 in Great Computer on August 30, 2024 and sell it today you would earn a total of 265.00 from holding Great Computer or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Computer vs. Yuan High Tech Development
Performance |
| Timeline |
| Great Computer |
| Yuan High Tech |
Great Computer and Yuan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Computer and Yuan High
The main advantage of trading using opposite Great Computer and Yuan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Computer position performs unexpectedly, Yuan High 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 Yuan High will offset losses from the drop in Yuan High's long position.| Great Computer vs. Sports Gear Co | Great Computer vs. Realtek Semiconductor Corp | Great Computer vs. RDC Semiconductor Co | Great Computer vs. WIN Semiconductors |
| Yuan High vs. Tung Thih Electronic | Yuan High vs. Ablerex Electronics Co | Yuan High vs. Great Computer | Yuan High vs. Mercuries Life Insurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |