Correlation Between Yulon Finance and CHC Resources
Can any of the company-specific risk be diversified away by investing in both Yulon Finance and CHC Resources 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 CHC Resources 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 CHC Resources Corp, you can compare the effects of market volatilities on Yulon Finance and CHC Resources 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 CHC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Finance and CHC Resources.
Diversification Opportunities for Yulon Finance and CHC Resources
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yulon and CHC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Finance Corp and CHC Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHC Resources Corp 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 CHC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHC Resources Corp has no effect on the direction of Yulon Finance i.e., Yulon Finance and CHC Resources go up and down completely randomly.
Pair Corralation between Yulon Finance and CHC Resources
Assuming the 90 days trading horizon Yulon Finance Corp is expected to generate 5.86 times more return on investment than CHC Resources. However, Yulon Finance is 5.86 times more volatile than CHC Resources Corp. It trades about 0.19 of its potential returns per unit of risk. CHC Resources Corp is currently generating about 0.0 per unit of risk. If you would invest 10,200 in Yulon Finance Corp on October 25, 2024 and sell it today you would earn a total of 1,200 from holding Yulon Finance Corp or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Finance Corp vs. CHC Resources Corp
Performance |
| Timeline |
| Yulon Finance Corp |
| CHC Resources Corp |
Yulon Finance and CHC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Finance and CHC Resources
The main advantage of trading using opposite Yulon Finance and CHC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Finance position performs unexpectedly, CHC Resources 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 CHC Resources will offset losses from the drop in CHC Resources' 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 |
| CHC Resources vs. Nan Ya Plastics | CHC Resources vs. Formosa Chemicals Fibre | CHC Resources vs. China Steel Corp | CHC Resources vs. Formosa Petrochemical 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |