Correlation Between Lery Seafood and Yokohama Rubber
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and Yokohama Rubber 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 Lery Seafood and Yokohama Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and The Yokohama Rubber, you can compare the effects of market volatilities on Lery Seafood and Yokohama Rubber 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 Lery Seafood with a short position of Yokohama Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Yokohama Rubber.
Diversification Opportunities for Lery Seafood and Yokohama Rubber
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lery and Yokohama is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and The Yokohama Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yokohama Rubber and Lery Seafood 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 Lery Seafood Group are associated (or correlated) with Yokohama Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yokohama Rubber has no effect on the direction of Lery Seafood i.e., Lery Seafood and Yokohama Rubber go up and down completely randomly.
Pair Corralation between Lery Seafood and Yokohama Rubber
Assuming the 90 days horizon Lery Seafood Group is expected to generate 1.18 times more return on investment than Yokohama Rubber. However, Lery Seafood is 1.18 times more volatile than The Yokohama Rubber. It trades about 0.09 of its potential returns per unit of risk. The Yokohama Rubber is currently generating about 0.04 per unit of risk. If you would invest 414.00 in Lery Seafood Group on November 2, 2024 and sell it today you would earn a total of 63.00 from holding Lery Seafood Group or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. The Yokohama Rubber
Performance |
| Timeline |
| Lery Seafood Group |
| Yokohama Rubber |
Lery Seafood and Yokohama Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Yokohama Rubber
The main advantage of trading using opposite Lery Seafood and Yokohama Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood position performs unexpectedly, Yokohama Rubber 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 Yokohama Rubber will offset losses from the drop in Yokohama Rubber's long position.| Lery Seafood vs. Mowi ASA | Lery Seafood vs. LEROY SEAFOOD GRUNSPADR | Lery Seafood vs. Yihai International Holding | Lery Seafood vs. Lery Seafood Group |
| Yokohama Rubber vs. Granite Construction | Yokohama Rubber vs. FANDIFI TECHNOLOGY P | Yokohama Rubber vs. AUST AGRICULTURAL | Yokohama Rubber vs. CanSino Biologics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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