Correlation Between Yield Guild and EM

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

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

Diversification Opportunities for Yield Guild and EM

0.0

Correlation Coefficient

Yield Guild  EM

Pay attention - limited upside

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

Pair Corralation between Yield Guild and EM

If you would invest  49.00  in Yield Guild Games on August 23, 2024 and sell it today you would lose (2.00) from holding Yield Guild Games or give up 4.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Yield Guild Games  vs.  EM

Yield Guild Games

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yield Guild Games are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Yield Guild may actually be approaching a critical reversion point that can send shares even higher in December 2024.

EM

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Yield Guild and EM

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

The idea behind Yield Guild Games and EM 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.