Correlation Between Yulong Eco and Smartmetric

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

By analyzing existing cross correlation between Yulong Eco Materials and Smartmetric, you can compare the effects of market volatilities on Yulong Eco and Smartmetric 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 Yulong Eco with a short position of Smartmetric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yulong Eco and Smartmetric.

Diversification Opportunities for Yulong Eco and Smartmetric

0.0

Correlation Coefficient

Yulong Eco  Smartmetric

Pay attention - limited upside

The 3 months correlation between Yulong and Smartmetric is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yulong Eco Materials and Smartmetric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartmetric and Yulong Eco 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 Yulong Eco Materials are associated (or correlated) with Smartmetric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartmetric has no effect on the direction of Yulong Eco i.e., Yulong Eco and Smartmetric go up and down completely randomly.

Pair Corralation between Yulong Eco and Smartmetric

If you would invest  0.01  in Smartmetric on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Smartmetric or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Yulong Eco Materials  vs.  Smartmetric

Yulong Eco Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yulong Eco Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Yulong Eco is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Smartmetric

Risk-Adjusted Performance

Very Weak

Over the last 90 days Smartmetric has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Smartmetric is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Yulong Eco and Smartmetric

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

The idea behind Yulong Eco Materials and Smartmetric 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.

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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.