Correlation Between Easywell Biomedicals and YoungQin International
Can any of the company-specific risk be diversified away by investing in both Easywell Biomedicals and YoungQin International 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 Easywell Biomedicals and YoungQin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easywell Biomedicals and YoungQin International Co, you can compare the effects of market volatilities on Easywell Biomedicals and YoungQin International 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 Easywell Biomedicals with a short position of YoungQin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easywell Biomedicals and YoungQin International.
Diversification Opportunities for Easywell Biomedicals and YoungQin International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Easywell and YoungQin is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Easywell Biomedicals and YoungQin International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YoungQin International and Easywell Biomedicals 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 Easywell Biomedicals are associated (or correlated) with YoungQin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YoungQin International has no effect on the direction of Easywell Biomedicals i.e., Easywell Biomedicals and YoungQin International go up and down completely randomly.
Pair Corralation between Easywell Biomedicals and YoungQin International
Assuming the 90 days trading horizon Easywell Biomedicals is expected to generate 3.95 times more return on investment than YoungQin International. However, Easywell Biomedicals is 3.95 times more volatile than YoungQin International Co. It trades about 0.01 of its potential returns per unit of risk. YoungQin International Co is currently generating about 0.04 per unit of risk. If you would invest 7,350 in Easywell Biomedicals on September 3, 2024 and sell it today you would lose (560.00) from holding Easywell Biomedicals or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easywell Biomedicals vs. YoungQin International Co
Performance |
| Timeline |
| Easywell Biomedicals |
| YoungQin International |
Easywell Biomedicals and YoungQin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easywell Biomedicals and YoungQin International
The main advantage of trading using opposite Easywell Biomedicals and YoungQin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easywell Biomedicals position performs unexpectedly, YoungQin International 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 YoungQin International will offset losses from the drop in YoungQin International's long position.| Easywell Biomedicals vs. StShine Optical Co | Easywell Biomedicals vs. Bioteque | Easywell Biomedicals vs. TTY Biopharm Co | Easywell Biomedicals vs. Apex Biotechnology Corp |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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