Correlation Between ASICS and Yue Yuen
Can any of the company-specific risk be diversified away by investing in both ASICS and Yue Yuen 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 ASICS and Yue Yuen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASICS and Yue Yuen Industrial, you can compare the effects of market volatilities on ASICS and Yue Yuen 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 ASICS with a short position of Yue Yuen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASICS and Yue Yuen.
Diversification Opportunities for ASICS and Yue Yuen
Excellent diversification
The 3 months correlation between ASICS and Yue is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ASICS and Yue Yuen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yue Yuen Industrial and ASICS 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 ASICS are associated (or correlated) with Yue Yuen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yue Yuen Industrial has no effect on the direction of ASICS i.e., ASICS and Yue Yuen go up and down completely randomly.
Pair Corralation between ASICS and Yue Yuen
Assuming the 90 days horizon ASICS is expected to under-perform the Yue Yuen. But the pink sheet apears to be less risky and, when comparing its historical volatility, ASICS is 1.47 times less risky than Yue Yuen. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Yue Yuen Industrial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 848.00 in Yue Yuen Industrial on September 12, 2024 and sell it today you would earn a total of 338.00 from holding Yue Yuen Industrial or generate 39.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASICS vs. Yue Yuen Industrial
Performance |
| Timeline |
| ASICS |
| Yue Yuen Industrial |
ASICS and Yue Yuen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASICS and Yue Yuen
The main advantage of trading using opposite ASICS and Yue Yuen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASICS position performs unexpectedly, Yue Yuen 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 Yue Yuen will offset losses from the drop in Yue Yuen's long position.| ASICS vs. American Rebel Holdings | ASICS vs. PUMA SE | ASICS vs. Adidas AG | ASICS vs. American Rebel Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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