Correlation Between Yieh United and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Yieh United and SS Healthcare 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 SS Healthcare 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 SS Healthcare Holding, you can compare the effects of market volatilities on Yieh United and SS Healthcare 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 SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh United and SS Healthcare.
Diversification Opportunities for Yieh United and SS Healthcare
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yieh and 4198 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Yieh United Steel and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding 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 SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Yieh United i.e., Yieh United and SS Healthcare go up and down completely randomly.
Pair Corralation between Yieh United and SS Healthcare
Assuming the 90 days trading horizon Yieh United Steel is expected to generate 0.33 times more return on investment than SS Healthcare. However, Yieh United Steel is 3.0 times less risky than SS Healthcare. It trades about -0.03 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about -0.07 per unit of risk. If you would invest 644.00 in Yieh United Steel on September 1, 2024 and sell it today you would lose (5.00) from holding Yieh United Steel or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yieh United Steel vs. SS Healthcare Holding
Performance |
| Timeline |
| Yieh United Steel |
| SS Healthcare Holding |
Yieh United and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yieh United and SS Healthcare
The main advantage of trading using opposite Yieh United and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh United position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Yieh United vs. Basso Industry Corp | Yieh United vs. Chung Hsin Electric Machinery | Yieh United vs. TYC Brother Industrial | Yieh United vs. TECO Electric Machinery |
| SS Healthcare vs. Universal Vision Biotechnology | SS Healthcare vs. Excelsior Medical Co | SS Healthcare vs. Hi Clearance | SS Healthcare vs. Brighten Optix |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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