Correlation Between Wing Yip and Borealis Foods

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

By analyzing existing cross correlation between Wing Yip Food and Borealis Foods, you can compare the effects of market volatilities on Wing Yip and Borealis 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 Wing Yip with a short position of Borealis Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wing Yip and Borealis Foods.

Diversification Opportunities for Wing Yip and Borealis Foods

-0.04

Correlation Coefficient

Wing Yip  Borealis Foods

Good diversification

The 3 months correlation between Wing and Borealis is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Wing Yip Food and Borealis Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borealis Foods and Wing Yip 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 Wing Yip Food are associated (or correlated) with Borealis Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borealis Foods has no effect on the direction of Wing Yip i.e., Wing Yip and Borealis Foods go up and down completely randomly.

Pair Corralation between Wing Yip and Borealis Foods

Given the investment horizon of 90 days Wing Yip Food is expected to under-perform the Borealis Foods. In addition to that, Wing Yip is 1.17 times more volatile than Borealis Foods. It trades about -0.12 of its total potential returns per unit of risk. Borealis Foods is currently generating about -0.04 per unit of volatility. If you would invest  12.00  in Borealis Foods on May 7, 2025 and sell it today you would lose (3.00) from holding Borealis Foods or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	49.18%
Values	Daily Returns

Wing Yip Food  vs.  Borealis Foods

Wing Yip Food

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wing Yip Food has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Borealis Foods

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Wing Yip and Borealis Foods

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

The idea behind Wing Yip Food and Borealis Foods 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 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..