Correlation Between Yieh United and Iron Force
Can any of the company-specific risk be diversified away by investing in both Yieh United and Iron Force 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 Yieh United and Iron Force into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yieh United Steel and Iron Force Industrial, you can compare the effects of market volatilities on Yieh United and Iron Force 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 Yieh United with a short position of Iron Force. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh United and Iron Force.
Diversification Opportunities for Yieh United and Iron Force
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yieh and Iron is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Yieh United Steel and Iron Force Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Force Industrial and Yieh United 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 Yieh United Steel are associated (or correlated) with Iron Force. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Force Industrial has no effect on the direction of Yieh United i.e., Yieh United and Iron Force go up and down completely randomly.
Pair Corralation between Yieh United and Iron Force
Assuming the 90 days trading horizon Yieh United Steel is expected to generate 0.72 times more return on investment than Iron Force. However, Yieh United Steel is 1.39 times less risky than Iron Force. It trades about 0.0 of its potential returns per unit of risk. Iron Force Industrial is currently generating about -0.19 per unit of risk. If you would invest 639.00 in Yieh United Steel on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Yieh United Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yieh United Steel vs. Iron Force Industrial
Performance |
| Timeline |
| Yieh United Steel |
| Iron Force Industrial |
Yieh United and Iron Force Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yieh United and Iron Force
The main advantage of trading using opposite Yieh United and Iron Force positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh United position performs unexpectedly, Iron Force 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 Iron Force will offset losses from the drop in Iron Force's long position.| Yieh United vs. Cayenne Entertainment Technology | Yieh United vs. Chunghwa Telecom Co | Yieh United vs. Jia Jie Biomedical | Yieh United vs. Simple Mart Retail |
| Iron Force vs. YCC Parts MFG | Iron Force vs. Hsing Ta Cement | Iron Force vs. De Licacy Industrial | Iron Force vs. Ruentex Development Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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