Correlation Between YanGuFang International and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both YanGuFang International and Stryve Foods 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 YanGuFang International and Stryve Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YanGuFang International Group and Stryve Foods, you can compare the effects of market volatilities on YanGuFang International and Stryve Foods 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 YanGuFang International with a short position of Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of YanGuFang International and Stryve Foods.
Diversification Opportunities for YanGuFang International and Stryve Foods
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YanGuFang and Stryve is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding YanGuFang International Group and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods and YanGuFang International 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 YanGuFang International Group are associated (or correlated) with Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of YanGuFang International i.e., YanGuFang International and Stryve Foods go up and down completely randomly.
Pair Corralation between YanGuFang International and Stryve Foods
Considering the 90-day investment horizon YanGuFang International Group is expected to under-perform the Stryve Foods. In addition to that, YanGuFang International is 3.88 times more volatile than Stryve Foods. It trades about -0.23 of its total potential returns per unit of risk. Stryve Foods is currently generating about 0.1 per unit of volatility. If you would invest 127.00 in Stryve Foods on February 5, 2024 and sell it today you would earn a total of 22.00 from holding Stryve Foods or generate 17.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
YanGuFang International Group vs. Stryve Foods
Performance |
Timeline |
YanGuFang International |
Stryve Foods |
YanGuFang International and Stryve Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YanGuFang International and Stryve Foods
The main advantage of trading using opposite YanGuFang International and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YanGuFang International position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.YanGuFang International vs. Pernod Ricard SA | YanGuFang International vs. Naked Wines plc | YanGuFang International vs. Willamette Valley Vineyards | YanGuFang International vs. Pernod Ricard SA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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