Correlation Between Big Buck and Yum China
Can any of the company-specific risk be diversified away by investing in both Big Buck and Yum China 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 Big Buck and Yum China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Buck Brewery and Yum China Holdings, you can compare the effects of market volatilities on Big Buck and Yum China 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 Big Buck with a short position of Yum China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Buck and Yum China.
Diversification Opportunities for Big Buck and Yum China
Pay attention - limited upside
The 3 months correlation between Big and Yum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Big Buck Brewery and Yum China Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum China Holdings and Big Buck 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 Big Buck Brewery are associated (or correlated) with Yum China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum China Holdings has no effect on the direction of Big Buck i.e., Big Buck and Yum China go up and down completely randomly.
Pair Corralation between Big Buck and Yum China
If you would invest 0.70 in Big Buck Brewery on January 25, 2024 and sell it today you would earn a total of 0.00 from holding Big Buck Brewery or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Big Buck Brewery vs. Yum China Holdings
Performance |
| Timeline |
| Big Buck Brewery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yum China Holdings |
Big Buck and Yum China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Buck and Yum China
The main advantage of trading using opposite Big Buck and Yum China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Buck position performs unexpectedly, Yum China 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 Yum China will offset losses from the drop in Yum China's long position.| Big Buck vs. Sensient Technologies | Big Buck vs. Kandi Technologies Group | Big Buck vs. Digi International | Big Buck vs. Gulf Resources |
| Yum China vs. Darden Restaurants | Yum China vs. The Wendys Co | Yum China vs. Dominos Pizza | Yum China vs. Restaurant Brands International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |