Correlation Between Yulon Finance and C Sun
Can any of the company-specific risk be diversified away by investing in both Yulon Finance and C Sun 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 C Sun 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 C Sun Manufacturing, you can compare the effects of market volatilities on Yulon Finance and C Sun 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 C Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Finance and C Sun.
Diversification Opportunities for Yulon Finance and C Sun
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yulon and 2467 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Finance Corp and C Sun Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Sun Manufacturing 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 C Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Sun Manufacturing has no effect on the direction of Yulon Finance i.e., Yulon Finance and C Sun go up and down completely randomly.
Pair Corralation between Yulon Finance and C Sun
Assuming the 90 days trading horizon Yulon Finance Corp is expected to under-perform the C Sun. But the stock apears to be less risky and, when comparing its historical volatility, Yulon Finance Corp is 2.11 times less risky than C Sun. The stock trades about -0.07 of its potential returns per unit of risk. The C Sun Manufacturing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,785 in C Sun Manufacturing on August 29, 2024 and sell it today you would earn a total of 16,015 from holding C Sun Manufacturing or generate 334.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Finance Corp vs. C Sun Manufacturing
Performance |
| Timeline |
| Yulon Finance Corp |
| C Sun Manufacturing |
Yulon Finance and C Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Finance and C Sun
The main advantage of trading using opposite Yulon Finance and C Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Finance position performs unexpectedly, C Sun 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 C Sun will offset losses from the drop in C Sun's long position.| Yulon Finance vs. Chailease Holding Co | Yulon Finance vs. Taiwan Secom Co | Yulon Finance vs. TTET Union Corp | Yulon Finance vs. China Steel Chemical |
| C Sun vs. Sunny Friend Environmental | C Sun vs. TTET Union Corp | C Sun vs. ECOVE Environment Corp | C Sun vs. Yulon Finance 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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