Correlation Between Yieh United and King Chou

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Can any of the company-specific risk be diversified away by investing in both Yieh United and King Chou 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 Yieh United and King Chou into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yieh United Steel and King Chou Marine, you can compare the effects of market volatilities on Yieh United and King Chou 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 Yieh United with a short position of King Chou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh United and King Chou.

Diversification Opportunities for Yieh United and King Chou

YiehKingDiversified AwayYiehKingDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Yieh and King is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yieh United Steel and King Chou Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Chou Marine and Yieh United 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 Yieh United Steel are associated (or correlated) with King Chou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Chou Marine has no effect on the direction of Yieh United i.e., Yieh United and King Chou go up and down completely randomly.

Pair Corralation between Yieh United and King Chou

Assuming the 90 days trading horizon Yieh United is expected to generate 2.46 times less return on investment than King Chou. In addition to that, Yieh United is 2.41 times more volatile than King Chou Marine. It trades about 0.04 of its total potential returns per unit of risk. King Chou Marine is currently generating about 0.26 per unit of volatility. If you would invest  3,965  in King Chou Marine on November 22, 2024 and sell it today you would earn a total of  450.00  from holding King Chou Marine or generate 11.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Yieh United Steel  vs.  King Chou Marine

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505
JavaScript chart by amCharts 3.21.159957 4417
       Timeline  
Yieh United Steel 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Yieh United Steel are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Yieh United is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb66.26.46.66.8
King Chou Marine 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in King Chou Marine are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, King Chou may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb394041424344

Yieh United and King Chou Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.71-4.28-2.84-1.410.01.412.874.335.87.26 0.10.20.30.40.50.60.7
JavaScript chart by amCharts 3.21.159957 4417
       Returns  

Pair Trading with Yieh United and King Chou

The main advantage of trading using opposite Yieh United and King Chou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh United position performs unexpectedly, King Chou 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 King Chou will offset losses from the drop in King Chou's long position.
The idea behind Yieh United Steel and King Chou Marine 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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