Correlation Between Feng Tay and Yi Jinn
Can any of the company-specific risk be diversified away by investing in both Feng Tay and Yi Jinn 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 Feng Tay and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feng Tay Enterprises and Yi Jinn Industrial, you can compare the effects of market volatilities on Feng Tay and Yi Jinn 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 Feng Tay with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feng Tay and Yi Jinn.
Diversification Opportunities for Feng Tay and Yi Jinn
Weak diversification
The 3 months correlation between Feng and 1457 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Feng Tay Enterprises and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and Feng Tay 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 Feng Tay Enterprises are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of Feng Tay i.e., Feng Tay and Yi Jinn go up and down completely randomly.
Pair Corralation between Feng Tay and Yi Jinn
Assuming the 90 days trading horizon Feng Tay Enterprises is expected to under-perform the Yi Jinn. In addition to that, Feng Tay is 1.37 times more volatile than Yi Jinn Industrial. It trades about -0.02 of its total potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.04 per unit of volatility. If you would invest 1,750 in Yi Jinn Industrial on September 12, 2024 and sell it today you would earn a total of 260.00 from holding Yi Jinn Industrial or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feng Tay Enterprises vs. Yi Jinn Industrial
Performance |
| Timeline |
| Feng Tay Enterprises |
| Yi Jinn Industrial |
Feng Tay and Yi Jinn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feng Tay and Yi Jinn
The main advantage of trading using opposite Feng Tay and Yi Jinn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feng Tay position performs unexpectedly, Yi Jinn 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 Yi Jinn will offset losses from the drop in Yi Jinn's long position.| Feng Tay vs. Pou Chen Corp | Feng Tay vs. Eclat Textile Co | Feng Tay vs. Hotai Motor Co | Feng Tay vs. Giant Manufacturing Co |
| Yi Jinn vs. Feng Tay Enterprises | Yi Jinn vs. Ruentex Development Co | Yi Jinn vs. WiseChip Semiconductor | Yi Jinn vs. Novatek Microelectronics Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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