Correlation Between Yeou Yih and U Media
Can any of the company-specific risk be diversified away by investing in both Yeou Yih and U Media 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 U Media 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 U Media Communications, you can compare the effects of market volatilities on Yeou Yih and U Media 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 U Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yeou Yih and U Media.
Diversification Opportunities for Yeou Yih and U Media
Very weak diversification
The 3 months correlation between Yeou and 6470 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Yeou Yih Steel and U Media Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Media Communications 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 U Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Media Communications has no effect on the direction of Yeou Yih i.e., Yeou Yih and U Media go up and down completely randomly.
Pair Corralation between Yeou Yih and U Media
Assuming the 90 days trading horizon Yeou Yih Steel is expected to generate 0.65 times more return on investment than U Media. However, Yeou Yih Steel is 1.54 times less risky than U Media. It trades about 0.02 of its potential returns per unit of risk. U Media Communications is currently generating about 0.0 per unit of risk. If you would invest 1,396 in Yeou Yih Steel on August 30, 2024 and sell it today you would earn a total of 144.00 from holding Yeou Yih Steel or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yeou Yih Steel vs. U Media Communications
Performance |
| Timeline |
| Yeou Yih Steel |
| U Media Communications |
Yeou Yih and U Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yeou Yih and U Media
The main advantage of trading using opposite Yeou Yih and U Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yeou Yih position performs unexpectedly, U Media 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 U Media will offset losses from the drop in U Media'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 |
| U Media vs. Mechema Chemicals Int | U Media vs. Grand Pacific Petrochemical | U Media vs. Taita Chemical Co | U Media vs. Phoenix Silicon International |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |