Correlation Between YASKAWA ELEC and Ming Le
Can any of the company-specific risk be diversified away by investing in both YASKAWA ELEC and Ming Le 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 YASKAWA ELEC and Ming Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YASKAWA ELEC UNSP and Ming Le Sports, you can compare the effects of market volatilities on YASKAWA ELEC and Ming Le 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 YASKAWA ELEC with a short position of Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of YASKAWA ELEC and Ming Le.
Diversification Opportunities for YASKAWA ELEC and Ming Le
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YASKAWA and Ming is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding YASKAWA ELEC UNSP and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports and YASKAWA ELEC 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 YASKAWA ELEC UNSP are associated (or correlated) with Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of YASKAWA ELEC i.e., YASKAWA ELEC and Ming Le go up and down completely randomly.
Pair Corralation between YASKAWA ELEC and Ming Le
Assuming the 90 days trading horizon YASKAWA ELEC UNSP is expected to under-perform the Ming Le. But the stock apears to be less risky and, when comparing its historical volatility, YASKAWA ELEC UNSP is 4.34 times less risky than Ming Le. The stock trades about -0.08 of its potential returns per unit of risk. The Ming Le Sports is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Ming Le Sports on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Ming Le Sports or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
YASKAWA ELEC UNSP vs. Ming Le Sports
Performance |
| Timeline |
| YASKAWA ELEC UNSP |
| Ming Le Sports |
YASKAWA ELEC and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YASKAWA ELEC and Ming Le
The main advantage of trading using opposite YASKAWA ELEC and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YASKAWA ELEC position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| YASKAWA ELEC vs. Superior Plus Corp | YASKAWA ELEC vs. SIVERS SEMICONDUCTORS AB | YASKAWA ELEC vs. Norsk Hydro ASA | YASKAWA ELEC vs. Reliance Steel Aluminum |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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