Correlation Between Yulon Finance and Acbel Polytech
Can any of the company-specific risk be diversified away by investing in both Yulon Finance and Acbel Polytech 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 Acbel Polytech 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 Acbel Polytech, you can compare the effects of market volatilities on Yulon Finance and Acbel Polytech 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 Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Finance and Acbel Polytech.
Diversification Opportunities for Yulon Finance and Acbel Polytech
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yulon and Acbel is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Finance Corp and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech 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 Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of Yulon Finance i.e., Yulon Finance and Acbel Polytech go up and down completely randomly.
Pair Corralation between Yulon Finance and Acbel Polytech
Assuming the 90 days trading horizon Yulon Finance Corp is expected to under-perform the Acbel Polytech. But the stock apears to be less risky and, when comparing its historical volatility, Yulon Finance Corp is 1.39 times less risky than Acbel Polytech. The stock trades about -0.3 of its potential returns per unit of risk. The Acbel Polytech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,365 in Acbel Polytech on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Acbel Polytech or generate 1.19% 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. Acbel Polytech
Performance |
| Timeline |
| Yulon Finance Corp |
| Acbel Polytech |
Yulon Finance and Acbel Polytech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Finance and Acbel Polytech
The main advantage of trading using opposite Yulon Finance and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Finance position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech's long position.| Yulon Finance vs. Taiwan Secom Co | Yulon Finance vs. TTET Union Corp | Yulon Finance vs. China Steel Chemical | Yulon Finance vs. Taiwan Shin Kong |
| Acbel Polytech vs. Yulon Motor Co | Acbel Polytech vs. Far Eastern Department | Acbel Polytech vs. China Steel Corp | Acbel Polytech vs. Chang Hwa Commercial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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