Correlation Between Yeou Yih and Amazing Microelectronic
Can any of the company-specific risk be diversified away by investing in both Yeou Yih and Amazing Microelectronic 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 Amazing Microelectronic 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 Amazing Microelectronic, you can compare the effects of market volatilities on Yeou Yih and Amazing Microelectronic 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 Amazing Microelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yeou Yih and Amazing Microelectronic.
Diversification Opportunities for Yeou Yih and Amazing Microelectronic
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yeou and Amazing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Yeou Yih Steel and Amazing Microelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazing Microelectronic 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 Amazing Microelectronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazing Microelectronic has no effect on the direction of Yeou Yih i.e., Yeou Yih and Amazing Microelectronic go up and down completely randomly.
Pair Corralation between Yeou Yih and Amazing Microelectronic
Assuming the 90 days trading horizon Yeou Yih Steel is expected to under-perform the Amazing Microelectronic. But the stock apears to be less risky and, when comparing its historical volatility, Yeou Yih Steel is 1.72 times less risky than Amazing Microelectronic. The stock trades about -0.05 of its potential returns per unit of risk. The Amazing Microelectronic is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,616 in Amazing Microelectronic on September 1, 2024 and sell it today you would lose (306.00) from holding Amazing Microelectronic or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yeou Yih Steel vs. Amazing Microelectronic
Performance |
| Timeline |
| Yeou Yih Steel |
| Amazing Microelectronic |
Yeou Yih and Amazing Microelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yeou Yih and Amazing Microelectronic
The main advantage of trading using opposite Yeou Yih and Amazing Microelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yeou Yih position performs unexpectedly, Amazing Microelectronic 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 Amazing Microelectronic will offset losses from the drop in Amazing Microelectronic's long position.| Yeou Yih vs. Asia Metal Industries | Yeou Yih vs. Taiwan Chinsan Electronic | Yeou Yih vs. Sesoda Corp | Yeou Yih vs. China Metal Products |
| Amazing Microelectronic vs. United Microelectronics | Amazing Microelectronic vs. Winbond Electronics 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |