Correlation Between Yoshitsu and Tantech Holdings

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

By analyzing existing cross correlation between Yoshitsu Co Ltd and Tantech Holdings, you can compare the effects of market volatilities on Yoshitsu and Tantech Holdings 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 Yoshitsu with a short position of Tantech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yoshitsu and Tantech Holdings.

Diversification Opportunities for Yoshitsu and Tantech Holdings

0.06

Correlation Coefficient

Yoshitsu  Tantech Holdings

Significant diversification

The 3 months correlation between Yoshitsu and Tantech is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Yoshitsu Co Ltd and Tantech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tantech Holdings and Yoshitsu 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 Yoshitsu Co Ltd are associated (or correlated) with Tantech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tantech Holdings has no effect on the direction of Yoshitsu i.e., Yoshitsu and Tantech Holdings go up and down completely randomly.

Pair Corralation between Yoshitsu and Tantech Holdings

Given the investment horizon of 90 days Yoshitsu is expected to generate 1.05 times less return on investment than Tantech Holdings. But when comparing it to its historical volatility, Yoshitsu Co Ltd is 1.93 times less risky than Tantech Holdings. It trades about 0.02 of its potential returns per unit of risk. Tantech Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  200.00  in Tantech Holdings on May 6, 2025 and sell it today you would lose (5.00) from holding Tantech Holdings or give up 2.5% of portfolio value over 90 days.

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

Yoshitsu Co Ltd  vs.  Tantech Holdings

Yoshitsu

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yoshitsu Co Ltd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Yoshitsu is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Tantech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tantech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Tantech Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Yoshitsu and Tantech Holdings

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

The idea behind Yoshitsu Co Ltd and Tantech Holdings 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.