Correlation Between Ruentex Development and Yi Jinn
Can any of the company-specific risk be diversified away by investing in both Ruentex Development and Yi Jinn 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 Ruentex Development and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ruentex Development Co and Yi Jinn Industrial, you can compare the effects of market volatilities on Ruentex Development and Yi Jinn 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 Ruentex Development with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruentex Development and Yi Jinn.
Diversification Opportunities for Ruentex Development and Yi Jinn
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ruentex and 1457 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ruentex Development Co and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and Ruentex Development 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 Ruentex Development Co are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of Ruentex Development i.e., Ruentex Development and Yi Jinn go up and down completely randomly.
Pair Corralation between Ruentex Development and Yi Jinn
Assuming the 90 days trading horizon Ruentex Development Co is expected to generate 1.51 times more return on investment than Yi Jinn. However, Ruentex Development is 1.51 times more volatile than Yi Jinn Industrial. It trades about 0.06 of its potential returns per unit of risk. Yi Jinn Industrial is currently generating about 0.04 per unit of risk. If you would invest 3,365 in Ruentex Development Co on September 12, 2024 and sell it today you would earn a total of 1,215 from holding Ruentex Development Co or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ruentex Development Co vs. Yi Jinn Industrial
Performance |
| Timeline |
| Ruentex Development |
| Yi Jinn Industrial |
Ruentex Development and Yi Jinn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ruentex Development and Yi Jinn
The main advantage of trading using opposite Ruentex Development and Yi Jinn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruentex Development position performs unexpectedly, Yi Jinn 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 Yi Jinn will offset losses from the drop in Yi Jinn's long position.| Ruentex Development vs. Chong Hong Construction | Ruentex Development vs. Symtek Automation Asia | Ruentex Development vs. WiseChip Semiconductor | Ruentex Development vs. Novatek Microelectronics Corp |
| Yi Jinn vs. Feng Tay Enterprises | Yi Jinn vs. Ruentex Development Co | Yi Jinn vs. WiseChip Semiconductor | Yi Jinn vs. Novatek Microelectronics 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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