Correlation Between Yong Shun and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Yong Shun and NYSE Composite 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 Yong Shun and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yong Shun Chemical and NYSE Composite, you can compare the effects of market volatilities on Yong Shun and NYSE Composite 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 Yong Shun with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yong Shun and NYSE Composite.
Diversification Opportunities for Yong Shun and NYSE Composite
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yong and NYSE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Yong Shun Chemical and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Yong Shun 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 Yong Shun Chemical are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Yong Shun i.e., Yong Shun and NYSE Composite go up and down completely randomly.
Pair Corralation between Yong Shun and NYSE Composite
Assuming the 90 days trading horizon Yong Shun Chemical is expected to generate 1.18 times more return on investment than NYSE Composite. However, Yong Shun is 1.18 times more volatile than NYSE Composite. It trades about -0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.22 per unit of risk. If you would invest 1,695 in Yong Shun Chemical on January 31, 2024 and sell it today you would lose (5.00) from holding Yong Shun Chemical or give up 0.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 90.91% |
Values | Daily Returns |
Yong Shun Chemical vs. NYSE Composite
Performance |
Timeline |
Yong Shun and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Yong Shun Chemical
Pair trading matchups for Yong Shun
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Yong Shun and NYSE Composite
The main advantage of trading using opposite Yong Shun and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yong Shun position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Yong Shun vs. Voltronic Power Technology | Yong Shun vs. Wholetech System Hitech | Yong Shun vs. Asmedia Technology | Yong Shun vs. Sitronix Technology Corp |
NYSE Composite vs. CECO Environmental Corp | NYSE Composite vs. Air Lease | NYSE Composite vs. Artisan Partners Asset | NYSE Composite vs. Iris Acquisition Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Stocks Directory Find actively traded stocks across global markets |