Correlation Between Cleanaway and Yulon
Can any of the company-specific risk be diversified away by investing in both Cleanaway and Yulon 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 Cleanaway and Yulon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Co and Yulon Motor Co, you can compare the effects of market volatilities on Cleanaway and Yulon 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 Cleanaway with a short position of Yulon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway and Yulon.
Diversification Opportunities for Cleanaway and Yulon
Modest diversification
The 3 months correlation between Cleanaway and Yulon is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Co and Yulon Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Motor and Cleanaway 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 Cleanaway Co are associated (or correlated) with Yulon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Motor has no effect on the direction of Cleanaway i.e., Cleanaway and Yulon go up and down completely randomly.
Pair Corralation between Cleanaway and Yulon
Assuming the 90 days trading horizon Cleanaway Co is expected to generate 0.42 times more return on investment than Yulon. However, Cleanaway Co is 2.41 times less risky than Yulon. It trades about 0.0 of its potential returns per unit of risk. Yulon Motor Co is currently generating about -0.03 per unit of risk. If you would invest 18,800 in Cleanaway Co on November 27, 2024 and sell it today you would lose (300.00) from holding Cleanaway Co or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Co vs. Yulon Motor Co
Performance |
| Timeline |
| Cleanaway |
| Yulon Motor |
Cleanaway and Yulon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway and Yulon
The main advantage of trading using opposite Cleanaway and Yulon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway position performs unexpectedly, Yulon 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 Yulon will offset losses from the drop in Yulon's long position.| Cleanaway vs. Sunny Friend Environmental | Cleanaway vs. Taiwan Secom Co | Cleanaway vs. TTET Union Corp | Cleanaway vs. ECOVE Environment Corp |
| Yulon vs. China Motor Corp | Yulon vs. China Steel Corp | Yulon vs. Nan Ya Plastics | Yulon vs. Chang Hwa Commercial |
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 CEOs Directory module to screen CEOs from public companies around the world.
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