Correlation Between Ton Yi and Gigastorage Corp
Can any of the company-specific risk be diversified away by investing in both Ton Yi and Gigastorage Corp 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 Ton Yi and Gigastorage Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ton Yi Industrial and Gigastorage Corp, you can compare the effects of market volatilities on Ton Yi and Gigastorage Corp 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 Ton Yi with a short position of Gigastorage Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ton Yi and Gigastorage Corp.
Diversification Opportunities for Ton Yi and Gigastorage Corp
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ton and Gigastorage is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ton Yi Industrial and Gigastorage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigastorage Corp and Ton Yi 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 Ton Yi Industrial are associated (or correlated) with Gigastorage Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigastorage Corp has no effect on the direction of Ton Yi i.e., Ton Yi and Gigastorage Corp go up and down completely randomly.
Pair Corralation between Ton Yi and Gigastorage Corp
Assuming the 90 days trading horizon Ton Yi Industrial is expected to generate 0.58 times more return on investment than Gigastorage Corp. However, Ton Yi Industrial is 1.74 times less risky than Gigastorage Corp. It trades about -0.07 of its potential returns per unit of risk. Gigastorage Corp is currently generating about -0.17 per unit of risk. If you would invest 1,595 in Ton Yi Industrial on September 13, 2024 and sell it today you would lose (30.00) from holding Ton Yi Industrial or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ton Yi Industrial vs. Gigastorage Corp
Performance |
| Timeline |
| Ton Yi Industrial |
| Gigastorage Corp |
Ton Yi and Gigastorage Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ton Yi and Gigastorage Corp
The main advantage of trading using opposite Ton Yi and Gigastorage Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ton Yi position performs unexpectedly, Gigastorage Corp 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 Gigastorage Corp will offset losses from the drop in Gigastorage Corp's long position.| Ton Yi vs. Tainan Spinning Co | Ton Yi vs. Lealea Enterprise Co | Ton Yi vs. China Petrochemical Development | Ton Yi vs. Ruentex Development Co |
| Gigastorage Corp vs. Hsinli Chemical Industrial | Gigastorage Corp vs. Data International Co | Gigastorage Corp vs. Prime Oil Chemical | Gigastorage Corp vs. AVer Information |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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