Correlation Between Dynamic Medical and Yulon Finance
Can any of the company-specific risk be diversified away by investing in both Dynamic Medical and Yulon Finance 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 Dynamic Medical and Yulon Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynamic Medical Technologies and Yulon Finance Corp, you can compare the effects of market volatilities on Dynamic Medical and Yulon Finance 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 Dynamic Medical with a short position of Yulon Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynamic Medical and Yulon Finance.
Diversification Opportunities for Dynamic Medical and Yulon Finance
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dynamic and Yulon is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Medical Technologies and Yulon Finance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Finance Corp and Dynamic Medical 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 Dynamic Medical Technologies are associated (or correlated) with Yulon Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Finance Corp has no effect on the direction of Dynamic Medical i.e., Dynamic Medical and Yulon Finance go up and down completely randomly.
Pair Corralation between Dynamic Medical and Yulon Finance
Assuming the 90 days trading horizon Dynamic Medical Technologies is expected to generate 10.46 times more return on investment than Yulon Finance. However, Dynamic Medical is 10.46 times more volatile than Yulon Finance Corp. It trades about 0.04 of its potential returns per unit of risk. Yulon Finance Corp is currently generating about -0.03 per unit of risk. If you would invest 8,970 in Dynamic Medical Technologies on October 6, 2024 and sell it today you would earn a total of 200.00 from holding Dynamic Medical Technologies or generate 2.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 97.73% |
Values | Daily Returns |
Dynamic Medical Technologies vs. Yulon Finance Corp
Performance |
Timeline |
Dynamic Medical Tech |
Yulon Finance Corp |
Dynamic Medical and Yulon Finance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dynamic Medical and Yulon Finance
The main advantage of trading using opposite Dynamic Medical and Yulon Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynamic Medical position performs unexpectedly, Yulon Finance 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 Yulon Finance will offset losses from the drop in Yulon Finance's long position.Dynamic Medical vs. StShine Optical Co | Dynamic Medical vs. Bioteque | Dynamic Medical vs. TTY Biopharm Co | Dynamic Medical vs. Apex Biotechnology Corp |
Yulon Finance vs. Quanta Computer | Yulon Finance vs. Jetwell Computer Co | Yulon Finance vs. RiTdisplay Corp | Yulon Finance vs. Feng Ching Metal |
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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