Correlation Between Run Long and YeaShin International

Can any of the company-specific risk be diversified away by investing in both Run Long and YeaShin International 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 Run Long and YeaShin International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Run Long Construction and YeaShin International Development, you can compare the effects of market volatilities on Run Long and YeaShin International 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 Run Long with a short position of YeaShin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Run Long and YeaShin International.

Diversification Opportunities for Run Long and YeaShin International

0.31

Correlation Coefficient

Run Long  YeaShin International

Weak diversification

The 3 months correlation between Run and YeaShin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Run Long Construction and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin International and Run Long 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 Run Long Construction are associated (or correlated) with YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of Run Long i.e., Run Long and YeaShin International go up and down completely randomly.

Pair Corralation between Run Long and YeaShin International

Assuming the 90 days trading horizon Run Long Construction is expected to under-perform the YeaShin International. But the stock apears to be less risky and, when comparing its historical volatility, Run Long Construction is 24.23 times less risky than YeaShin International. The stock trades about -0.35 of its potential returns per unit of risk. The YeaShin International Development is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,341  in YeaShin International Development on September 29, 2024 and sell it today you would lose (206.00) from holding YeaShin International Development or give up 6.17% of portfolio value over 90 days.

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

Run Long Construction  vs.  YeaShin International Developm

Run Long Construction

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Run Long Construction has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

YeaShin International

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in YeaShin International Development are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, YeaShin International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Run Long and YeaShin International

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

The idea behind Run Long Construction and YeaShin International Development 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.