Correlation Between Youngy Health and Yes Optoelectronics

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Can any of the company-specific risk be diversified away by investing in both Youngy Health and Yes Optoelectronics 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 Youngy Health and Yes Optoelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngy Health Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Youngy Health and Yes Optoelectronics 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 Youngy Health with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngy Health and Yes Optoelectronics.

Diversification Opportunities for Youngy Health and Yes Optoelectronics

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Youngy and Yes is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Youngy Health Co and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Youngy Health 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 Youngy Health Co are associated (or correlated) with Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Youngy Health i.e., Youngy Health and Yes Optoelectronics go up and down completely randomly.

Pair Corralation between Youngy Health and Yes Optoelectronics

Assuming the 90 days trading horizon Youngy Health Co is expected to generate 0.6 times more return on investment than Yes Optoelectronics. However, Youngy Health Co is 1.67 times less risky than Yes Optoelectronics. It trades about 0.01 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.2 per unit of risk. If you would invest  358.00  in Youngy Health Co on November 3, 2024 and sell it today you would earn a total of  0.00  from holding Youngy Health Co or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Youngy Health Co  vs.  Yes Optoelectronics Co

 Performance 
       Timeline  
Youngy Health 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Youngy Health Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Yes Optoelectronics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Yes Optoelectronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Youngy Health and Yes Optoelectronics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Youngy Health and Yes Optoelectronics

The main advantage of trading using opposite Youngy Health and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngy Health position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.
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The idea behind Youngy Health Co and Yes Optoelectronics Co 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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