Correlation Between Yulon Finance and Taiwan Shin
Can any of the company-specific risk be diversified away by investing in both Yulon Finance and Taiwan Shin 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 Taiwan Shin 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 Taiwan Shin Kong, you can compare the effects of market volatilities on Yulon Finance and Taiwan Shin 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 Taiwan Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Finance and Taiwan Shin.
Diversification Opportunities for Yulon Finance and Taiwan Shin
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yulon and Taiwan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Finance Corp and Taiwan Shin Kong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Shin Kong 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 Taiwan Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Shin Kong has no effect on the direction of Yulon Finance i.e., Yulon Finance and Taiwan Shin go up and down completely randomly.
Pair Corralation between Yulon Finance and Taiwan Shin
Assuming the 90 days trading horizon Yulon Finance Corp is expected to under-perform the Taiwan Shin. In addition to that, Yulon Finance is 3.21 times more volatile than Taiwan Shin Kong. It trades about -0.04 of its total potential returns per unit of risk. Taiwan Shin Kong is currently generating about 0.03 per unit of volatility. If you would invest 3,809 in Taiwan Shin Kong on October 25, 2024 and sell it today you would earn a total of 286.00 from holding Taiwan Shin Kong or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Yulon Finance Corp vs. Taiwan Shin Kong
Performance |
| Timeline |
| Yulon Finance Corp |
| Taiwan Shin Kong |
Yulon Finance and Taiwan Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Finance and Taiwan Shin
The main advantage of trading using opposite Yulon Finance and Taiwan Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Finance position performs unexpectedly, Taiwan Shin 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 Taiwan Shin will offset losses from the drop in Taiwan Shin'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 |
| Taiwan Shin vs. Taiwan Secom Co | Taiwan Shin vs. Yulon Finance Corp | Taiwan Shin vs. CHC Resources Corp | Taiwan Shin vs. Nak Sealing Technologies |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |