Correlation Between XAC Automation and Yi Jinn

Can any of the company-specific risk be diversified away by investing in both XAC Automation and Yi Jinn 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 XAC Automation and Yi Jinn into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between XAC Automation and Yi Jinn Industrial, you can compare the effects of market volatilities on XAC Automation and Yi Jinn 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 XAC Automation with a short position of Yi Jinn. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAC Automation and Yi Jinn.

Diversification Opportunities for XAC Automation and Yi Jinn

-0.02

Correlation Coefficient

XAC Automation  Yi Jinn

Good diversification

The 3 months correlation between XAC and 1457 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding XAC Automation and Yi Jinn Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yi Jinn Industrial and XAC Automation 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 XAC Automation are associated (or correlated) with Yi Jinn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yi Jinn Industrial has no effect on the direction of XAC Automation i.e., XAC Automation and Yi Jinn go up and down completely randomly.

Pair Corralation between XAC Automation and Yi Jinn

Assuming the 90 days trading horizon XAC Automation is expected to under-perform the Yi Jinn. In addition to that, XAC Automation is 1.58 times more volatile than Yi Jinn Industrial. It trades about -0.09 of its total potential returns per unit of risk. Yi Jinn Industrial is currently generating about -0.05 per unit of volatility. If you would invest  1,990  in Yi Jinn Industrial on October 7, 2024 and sell it today you would lose (30.00) from holding Yi Jinn Industrial or give up 1.51% of portfolio value over 90 days.

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

XAC Automation  vs.  Yi Jinn Industrial

XAC Automation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XAC Automation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, XAC Automation is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Yi Jinn Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yi Jinn Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Yi Jinn is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with XAC Automation and Yi Jinn

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

The idea behind XAC Automation and Yi Jinn Industrial 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.