Correlation Between Inzi Display and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both Inzi Display and YeSUN Tech 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 Inzi Display and YeSUN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and YeSUN Tech CoLtd, you can compare the effects of market volatilities on Inzi Display and YeSUN Tech 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 Inzi Display with a short position of YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and YeSUN Tech.
Diversification Opportunities for Inzi Display and YeSUN Tech
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inzi and YeSUN is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech CoLtd and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Inzi Display i.e., Inzi Display and YeSUN Tech go up and down completely randomly.
Pair Corralation between Inzi Display and YeSUN Tech
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the YeSUN Tech. But the stock apears to be less risky and, when comparing its historical volatility, Inzi Display CoLtd is 5.19 times less risky than YeSUN Tech. The stock trades about -0.15 of its potential returns per unit of risk. The YeSUN Tech CoLtd is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 57,600 in YeSUN Tech CoLtd on October 21, 2024 and sell it today you would lose (9,300) from holding YeSUN Tech CoLtd or give up 16.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Inzi Display CoLtd vs. YeSUN Tech CoLtd
Performance |
Timeline |
Inzi Display CoLtd |
YeSUN Tech CoLtd |
Inzi Display and YeSUN Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inzi Display and YeSUN Tech
The main advantage of trading using opposite Inzi Display and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech's long position.Inzi Display vs. SS TECH | Inzi Display vs. RFTech Co | Inzi Display vs. Korea Air Svc | Inzi Display vs. Korean Air Lines |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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