Correlation Between Energenesis Biomedical and Ton Yi

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

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

Diversification Opportunities for Energenesis Biomedical and Ton Yi

0.86

Correlation Coefficient

Energenesis Biomedical  Ton Yi

Very poor diversification

The 3 months correlation between Energenesis and Ton is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Energenesis Biomedical Co and Ton Yi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ton Yi Industrial and Energenesis Biomedical 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 Energenesis Biomedical Co are associated (or correlated) with Ton Yi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ton Yi Industrial has no effect on the direction of Energenesis Biomedical i.e., Energenesis Biomedical and Ton Yi go up and down completely randomly.

Pair Corralation between Energenesis Biomedical and Ton Yi

Assuming the 90 days trading horizon Energenesis Biomedical Co is expected to generate 3.62 times more return on investment than Ton Yi. However, Energenesis Biomedical is 3.62 times more volatile than Ton Yi Industrial. It trades about 0.17 of its potential returns per unit of risk. Ton Yi Industrial is currently generating about 0.24 per unit of risk. If you would invest  5,080  in Energenesis Biomedical Co on December 31, 2024 and sell it today you would earn a total of  1,920  from holding Energenesis Biomedical Co or generate 37.8% return on investment over 90 days.

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

Energenesis Biomedical Co  vs.  Ton Yi Industrial

Energenesis Biomedical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Energenesis Biomedical Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Energenesis Biomedical showed solid returns over the last few months and may actually be approaching a breakup point.

Ton Yi Industrial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ton Yi Industrial are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ton Yi showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Energenesis Biomedical and Ton Yi

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

The idea behind Energenesis Biomedical Co and Ton Yi 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.

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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.