Correlation Between Green World and Yulon Finance
Can any of the company-specific risk be diversified away by investing in both Green World 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 Green World and Yulon Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Yulon Finance Corp, you can compare the effects of market volatilities on Green World 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 Green World with a short position of Yulon Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Yulon Finance.
Diversification Opportunities for Green World and Yulon Finance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Green and Yulon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech 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 Green World 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 Green World Fintech 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 Green World i.e., Green World and Yulon Finance go up and down completely randomly.
Pair Corralation between Green World and Yulon Finance
Assuming the 90 days trading horizon Green World Fintech is expected to generate 1.82 times more return on investment than Yulon Finance. However, Green World is 1.82 times more volatile than Yulon Finance Corp. It trades about 0.15 of its potential returns per unit of risk. Yulon Finance Corp is currently generating about 0.08 per unit of risk. If you would invest 5,990 in Green World Fintech on December 3, 2024 and sell it today you would earn a total of 960.00 from holding Green World Fintech or generate 16.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Green World Fintech vs. Yulon Finance Corp
Performance |
Timeline |
Green World Fintech |
Yulon Finance Corp |
Green World and Yulon Finance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green World and Yulon Finance
The main advantage of trading using opposite Green World and Yulon Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World 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.Green World vs. Everlight Electronics Co | Green World vs. WT Microelectronics Co | Green World vs. Chailease Holding Co | Green World vs. Thinking Electronic Industrial |
Yulon Finance vs. Chailease Holding Co | Yulon Finance vs. Taiwan Secom Co | Yulon Finance vs. TTET Union Corp | Yulon Finance vs. China Steel Chemical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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