Correlation Between Young Cos and Compal Electronics
Can any of the company-specific risk be diversified away by investing in both Young Cos and Compal Electronics 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 Young Cos and Compal Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Young Cos Brewery and Compal Electronics GDR, you can compare the effects of market volatilities on Young Cos and Compal Electronics 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 Young Cos with a short position of Compal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Young Cos and Compal Electronics.
Diversification Opportunities for Young Cos and Compal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Young and Compal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Young Cos Brewery and Compal Electronics GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compal Electronics GDR and Young Cos 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 Young Cos Brewery are associated (or correlated) with Compal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compal Electronics GDR has no effect on the direction of Young Cos i.e., Young Cos and Compal Electronics go up and down completely randomly.
Pair Corralation between Young Cos and Compal Electronics
If you would invest 61,669 in Young Cos Brewery on September 3, 2024 and sell it today you would earn a total of 2,131 from holding Young Cos Brewery or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Young Cos Brewery vs. Compal Electronics GDR
Performance |
| Timeline |
| Young Cos Brewery |
| Compal Electronics GDR |
Young Cos and Compal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Young Cos and Compal Electronics
The main advantage of trading using opposite Young Cos and Compal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Young Cos position performs unexpectedly, Compal Electronics 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 Compal Electronics will offset losses from the drop in Compal Electronics' long position.| Young Cos vs. Odyssean Investment Trust | Young Cos vs. Host Hotels Resorts | Young Cos vs. United Utilities Group | Young Cos vs. Herald Investment Trust |
| Compal Electronics vs. Samsung Electronics Co | Compal Electronics vs. Samsung Electronics Co | Compal Electronics vs. Hyundai Motor | Compal Electronics vs. Toyota Motor 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 Stocks Directory module to find actively traded stocks across global markets.
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