Correlation Between Yeou Yih and China Glaze
Can any of the company-specific risk be diversified away by investing in both Yeou Yih and China Glaze 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 Yeou Yih and China Glaze into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yeou Yih Steel and China Glaze Co, you can compare the effects of market volatilities on Yeou Yih and China Glaze 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 Yeou Yih with a short position of China Glaze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yeou Yih and China Glaze.
Diversification Opportunities for Yeou Yih and China Glaze
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yeou and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Yeou Yih Steel and China Glaze Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Glaze and Yeou Yih 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 Yeou Yih Steel are associated (or correlated) with China Glaze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Glaze has no effect on the direction of Yeou Yih i.e., Yeou Yih and China Glaze go up and down completely randomly.
Pair Corralation between Yeou Yih and China Glaze
Assuming the 90 days trading horizon Yeou Yih Steel is expected to under-perform the China Glaze. But the stock apears to be less risky and, when comparing its historical volatility, Yeou Yih Steel is 4.59 times less risky than China Glaze. The stock trades about -0.11 of its potential returns per unit of risk. The China Glaze Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,155 in China Glaze Co on August 29, 2024 and sell it today you would earn a total of 115.00 from holding China Glaze Co or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yeou Yih Steel vs. China Glaze Co
Performance |
| Timeline |
| Yeou Yih Steel |
| China Glaze |
Yeou Yih and China Glaze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yeou Yih and China Glaze
The main advantage of trading using opposite Yeou Yih and China Glaze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yeou Yih position performs unexpectedly, China Glaze 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 China Glaze will offset losses from the drop in China Glaze's long position.| Yeou Yih vs. Dadi Early Childhood Education | Yeou Yih vs. Kindom Construction Corp | Yeou Yih vs. Ruentex Engineering Construction | Yeou Yih vs. Chiu Ting Machinery |
| China Glaze vs. Champion Building Materials | China Glaze vs. Taiwan Glass Ind | China Glaze vs. Chung Hwa Pulp | China Glaze vs. China Man Made Fiber |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |