Correlation Between Ton Yi and Eagle Cold
Can any of the company-specific risk be diversified away by investing in both Ton Yi and Eagle Cold 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 Eagle Cold 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 Eagle Cold Storage, you can compare the effects of market volatilities on Ton Yi and Eagle Cold 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 Eagle Cold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ton Yi and Eagle Cold.
Diversification Opportunities for Ton Yi and Eagle Cold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ton and Eagle is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ton Yi Industrial and Eagle Cold Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Cold Storage 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 Eagle Cold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Cold Storage has no effect on the direction of Ton Yi i.e., Ton Yi and Eagle Cold go up and down completely randomly.
Pair Corralation between Ton Yi and Eagle Cold
Assuming the 90 days trading horizon Ton Yi Industrial is expected to under-perform the Eagle Cold. In addition to that, Ton Yi is 1.18 times more volatile than Eagle Cold Storage. It trades about -0.11 of its total potential returns per unit of risk. Eagle Cold Storage is currently generating about -0.1 per unit of volatility. If you would invest 3,065 in Eagle Cold Storage on September 1, 2024 and sell it today you would lose (105.00) from holding Eagle Cold Storage or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ton Yi Industrial vs. Eagle Cold Storage
Performance |
| Timeline |
| Ton Yi Industrial |
| Eagle Cold Storage |
Ton Yi and Eagle Cold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ton Yi and Eagle Cold
The main advantage of trading using opposite Ton Yi and Eagle Cold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ton Yi position performs unexpectedly, Eagle Cold 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 Eagle Cold will offset losses from the drop in Eagle Cold's long position.| Ton Yi vs. Far Eastern Department | Ton Yi vs. Chang Hwa Commercial | Ton Yi vs. Zinwell | Ton Yi vs. Evergreen International Storage |
| Eagle Cold vs. Formosa Electronic Industries | Eagle Cold vs. Golden Biotechnology | Eagle Cold vs. Leader Electronics | Eagle Cold vs. Universal Vision Biotechnology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| 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 | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |