Correlation Between YungShin Global and Double Bond

Can any of the company-specific risk be diversified away by investing in both YungShin Global and Double Bond 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 YungShin Global and Double Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YungShin Global Holding and Double Bond Chemical, you can compare the effects of market volatilities on YungShin Global and Double Bond 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 YungShin Global with a short position of Double Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of YungShin Global and Double Bond.

Diversification Opportunities for YungShin Global and Double Bond

0.04

Correlation Coefficient

YungShin Global  Double Bond

Significant diversification

The 3 months correlation between YungShin and Double is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding YungShin Global Holding and Double Bond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Bond Chemical and YungShin Global 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 YungShin Global Holding are associated (or correlated) with Double Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Bond Chemical has no effect on the direction of YungShin Global i.e., YungShin Global and Double Bond go up and down completely randomly.

Pair Corralation between YungShin Global and Double Bond

Assuming the 90 days trading horizon YungShin Global is expected to generate 1.16 times less return on investment than Double Bond. In addition to that, YungShin Global is 1.05 times more volatile than Double Bond Chemical. It trades about 0.08 of its total potential returns per unit of risk. Double Bond Chemical is currently generating about 0.1 per unit of volatility. If you would invest  4,380  in Double Bond Chemical on December 24, 2024 and sell it today you would earn a total of  240.00  from holding Double Bond Chemical or generate 5.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

YungShin Global Holding  vs.  Double Bond Chemical

YungShin Global Holding

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in YungShin Global Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, YungShin Global is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Double Bond Chemical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Double Bond Chemical are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Double Bond may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with YungShin Global and Double Bond

The main advantage of trading using opposite YungShin Global and Double Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YungShin Global position performs unexpectedly, Double Bond 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 Double Bond will offset losses from the drop in Double Bond's long position.

The idea behind YungShin Global Holding and Double Bond Chemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.