Correlation Between Yageo Corp and E Ink
Can any of the company-specific risk be diversified away by investing in both Yageo Corp and E Ink 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 Yageo Corp and E Ink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yageo Corp and E Ink Holdings, you can compare the effects of market volatilities on Yageo Corp and E Ink 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 Yageo Corp with a short position of E Ink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yageo Corp and E Ink.
Diversification Opportunities for Yageo Corp and E Ink
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yageo and 8069 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Yageo Corp and E Ink Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Ink Holdings and Yageo Corp 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 Yageo Corp are associated (or correlated) with E Ink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Ink Holdings has no effect on the direction of Yageo Corp i.e., Yageo Corp and E Ink go up and down completely randomly.
Pair Corralation between Yageo Corp and E Ink
Assuming the 90 days trading horizon Yageo Corp is expected to generate 0.78 times more return on investment than E Ink. However, Yageo Corp is 1.28 times less risky than E Ink. It trades about 0.14 of its potential returns per unit of risk. E Ink Holdings is currently generating about -0.01 per unit of risk. If you would invest 51,900 in Yageo Corp on December 5, 2024 and sell it today you would earn a total of 3,300 from holding Yageo Corp or generate 6.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Yageo Corp vs. E Ink Holdings
Performance |
Timeline |
Yageo Corp |
E Ink Holdings |
Yageo Corp and E Ink Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yageo Corp and E Ink
The main advantage of trading using opposite Yageo Corp and E Ink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yageo Corp position performs unexpectedly, E Ink 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 E Ink will offset losses from the drop in E Ink's long position.Yageo Corp vs. Newretail Co | Yageo Corp vs. Grand Ocean Retail | Yageo Corp vs. PChome Online | Yageo Corp vs. Promise Technology |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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