Correlation Between Yulon Finance and Wholetech System
Can any of the company-specific risk be diversified away by investing in both Yulon Finance and Wholetech System 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 Wholetech System 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 Wholetech System Hitech, you can compare the effects of market volatilities on Yulon Finance and Wholetech System 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 Wholetech System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulon Finance and Wholetech System.
Diversification Opportunities for Yulon Finance and Wholetech System
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yulon and Wholetech is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Yulon Finance Corp and Wholetech System Hitech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wholetech System Hitech 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 Wholetech System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wholetech System Hitech has no effect on the direction of Yulon Finance i.e., Yulon Finance and Wholetech System go up and down completely randomly.
Pair Corralation between Yulon Finance and Wholetech System
Assuming the 90 days trading horizon Yulon Finance is expected to generate 12.2 times less return on investment than Wholetech System. But when comparing it to its historical volatility, Yulon Finance Corp is 9.4 times less risky than Wholetech System. It trades about 0.06 of its potential returns per unit of risk. Wholetech System Hitech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,739 in Wholetech System Hitech on September 12, 2024 and sell it today you would earn a total of 3,711 from holding Wholetech System Hitech or generate 55.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yulon Finance Corp vs. Wholetech System Hitech
Performance |
| Timeline |
| Yulon Finance Corp |
| Wholetech System Hitech |
Yulon Finance and Wholetech System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yulon Finance and Wholetech System
The main advantage of trading using opposite Yulon Finance and Wholetech System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yulon Finance position performs unexpectedly, Wholetech System 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 Wholetech System will offset losses from the drop in Wholetech System's long position.| Yulon Finance vs. Chailease Holding Co | Yulon Finance vs. Yulon Finance Corp | Yulon Finance vs. Hotai Finance Corp | Yulon Finance vs. YuantaP shares Taiwan Electronics |
| Wholetech System vs. AU Optronics | Wholetech System vs. Innolux Corp | Wholetech System vs. Ruentex Development Co | Wholetech System vs. WiseChip Semiconductor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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