Correlation Between Yulon Finance and Chia Her
Can any of the company-specific risk be diversified away by investing in both Yulon Finance and Chia Her 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 Yulon Finance and Chia Her into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yulon Finance Corp and Chia Her Industrial, you can compare the effects of market volatilities on Yulon Finance and Chia Her 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 Yulon Finance with a short position of Chia Her. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Finance and Chia Her.
Diversification Opportunities for Yulon Finance and Chia Her
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yulon and Chia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Finance Corp and Chia Her Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chia Her Industrial and Yulon Finance 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 Yulon Finance Corp are associated (or correlated) with Chia Her. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chia Her Industrial has no effect on the direction of Yulon Finance i.e., Yulon Finance and Chia Her go up and down completely randomly.
Pair Corralation between Yulon Finance and Chia Her
Assuming the 90 days trading horizon Yulon Finance Corp is expected to under-perform the Chia Her. But the stock apears to be less risky and, when comparing its historical volatility, Yulon Finance Corp is 1.89 times less risky than Chia Her. The stock trades about -0.3 of its potential returns per unit of risk. The Chia Her Industrial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,230 in Chia Her Industrial on September 1, 2024 and sell it today you would earn a total of 145.00 from holding Chia Her Industrial or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Finance Corp vs. Chia Her Industrial
Performance |
| Timeline |
| Yulon Finance Corp |
| Chia Her Industrial |
Yulon Finance and Chia Her Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Finance and Chia Her
The main advantage of trading using opposite Yulon Finance and Chia Her positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Finance position performs unexpectedly, Chia Her 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 Chia Her will offset losses from the drop in Chia Her's long position.| Yulon Finance vs. Central Reinsurance Corp | Yulon Finance vs. Huaku Development Co | Yulon Finance vs. Fubon Financial Holding |
| Chia Her vs. Carnival Industrial Corp | Chia Her vs. I Hwa Industrial Co | Chia Her vs. Hung Chou Fiber | Chia Her vs. Tung Ho Textile |
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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