Correlation Between Yieh Phui and Century Iron
Can any of the company-specific risk be diversified away by investing in both Yieh Phui and Century Iron 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 Yieh Phui and Century Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yieh Phui Enterprise and Century Iron And, you can compare the effects of market volatilities on Yieh Phui and Century Iron 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 Yieh Phui with a short position of Century Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh Phui and Century Iron.
Diversification Opportunities for Yieh Phui and Century Iron
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yieh and Century is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Yieh Phui Enterprise and Century Iron And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Iron And and Yieh Phui 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 Yieh Phui Enterprise are associated (or correlated) with Century Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Iron And has no effect on the direction of Yieh Phui i.e., Yieh Phui and Century Iron go up and down completely randomly.
Pair Corralation between Yieh Phui and Century Iron
Assuming the 90 days trading horizon Yieh Phui Enterprise is expected to generate 0.32 times more return on investment than Century Iron. However, Yieh Phui Enterprise is 3.09 times less risky than Century Iron. It trades about -0.1 of its potential returns per unit of risk. Century Iron And is currently generating about -0.21 per unit of risk. If you would invest 1,505 in Yieh Phui Enterprise on September 23, 2024 and sell it today you would lose (55.00) from holding Yieh Phui Enterprise or give up 3.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Yieh Phui Enterprise vs. Century Iron And
Performance |
Timeline |
Yieh Phui Enterprise |
Century Iron And |
Yieh Phui and Century Iron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yieh Phui and Century Iron
The main advantage of trading using opposite Yieh Phui and Century Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh Phui position performs unexpectedly, Century Iron 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 Century Iron will offset losses from the drop in Century Iron's long position.Yieh Phui vs. Formosa Plastics Corp | Yieh Phui vs. Formosa Chemicals Fibre | Yieh Phui vs. China Steel Corp | Yieh Phui vs. Formosa Petrochemical Corp |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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