Correlation Between So Young and Telephone
Can any of the company-specific risk be diversified away by investing in both So Young and Telephone 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 So Young and Telephone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and Telephone and Data, you can compare the effects of market volatilities on So Young and Telephone 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 So Young with a short position of Telephone. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and Telephone.
Diversification Opportunities for So Young and Telephone
Very good diversification
The 3 months correlation between So Young and Telephone is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and Telephone and Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telephone and Data and So Young 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 So Young International are associated (or correlated) with Telephone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telephone and Data has no effect on the direction of So Young i.e., So Young and Telephone go up and down completely randomly.
Pair Corralation between So Young and Telephone
Allowing for the 90-day total investment horizon So Young International is expected to generate 1.0 times more return on investment than Telephone. However, So Young International is 1.0 times less risky than Telephone. It trades about 0.04 of its potential returns per unit of risk. Telephone and Data is currently generating about 0.02 per unit of risk. If you would invest 97.00 in So Young International on February 3, 2024 and sell it today you would earn a total of 34.00 from holding So Young International or generate 35.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
So Young International vs. Telephone and Data
Performance |
Timeline |
So Young International |
Telephone and Data |
So Young and Telephone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with So Young and Telephone
The main advantage of trading using opposite So Young and Telephone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, Telephone 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 Telephone will offset losses from the drop in Telephone's long position.So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
Telephone vs. Skyworks Solutions | Telephone vs. Vanguard Small Cap Growth | Telephone vs. Merck Company | Telephone vs. The Wendys Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |