Correlation Between Yi Jinn and Wistron NeWeb
Can any of the company-specific risk be diversified away by investing in both Yi Jinn and Wistron NeWeb 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 Yi Jinn and Wistron NeWeb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yi Jinn Industrial and Wistron NeWeb Corp, you can compare the effects of market volatilities on Yi Jinn and Wistron NeWeb 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 Yi Jinn with a short position of Wistron NeWeb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yi Jinn and Wistron NeWeb.
Diversification Opportunities for Yi Jinn and Wistron NeWeb
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 1457 and Wistron is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Yi Jinn Industrial and Wistron NeWeb Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wistron NeWeb Corp and Yi Jinn 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 Yi Jinn Industrial are associated (or correlated) with Wistron NeWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wistron NeWeb Corp has no effect on the direction of Yi Jinn i.e., Yi Jinn and Wistron NeWeb go up and down completely randomly.
Pair Corralation between Yi Jinn and Wistron NeWeb
Assuming the 90 days trading horizon Yi Jinn is expected to generate 8.75 times less return on investment than Wistron NeWeb. But when comparing it to its historical volatility, Yi Jinn Industrial is 2.66 times less risky than Wistron NeWeb. It trades about 0.05 of its potential returns per unit of risk. Wistron NeWeb Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12,000 in Wistron NeWeb Corp on December 5, 2024 and sell it today you would earn a total of 2,650 from holding Wistron NeWeb Corp or generate 22.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Yi Jinn Industrial vs. Wistron NeWeb Corp
Performance |
Timeline |
Yi Jinn Industrial |
Wistron NeWeb Corp |
Yi Jinn and Wistron NeWeb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yi Jinn and Wistron NeWeb
The main advantage of trading using opposite Yi Jinn and Wistron NeWeb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yi Jinn position performs unexpectedly, Wistron NeWeb 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 Wistron NeWeb will offset losses from the drop in Wistron NeWeb's long position.Yi Jinn vs. Zig Sheng Industrial | Yi Jinn vs. Hong Yi Fiber | Yi Jinn vs. Lealea Enterprise Co | Yi Jinn vs. Shinkong Synthetic Fiber |
Wistron NeWeb vs. Nova Technology | Wistron NeWeb vs. Chialin Precision Industrial | Wistron NeWeb vs. ADLINK Technology | Wistron NeWeb vs. Kinsus Interconnect Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |