Correlation Between YAOKO and Hubbell Incorporated
Can any of the company-specific risk be diversified away by investing in both YAOKO and Hubbell Incorporated 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 YAOKO and Hubbell Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YAOKO LTD and Hubbell Incorporated, you can compare the effects of market volatilities on YAOKO and Hubbell Incorporated 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 YAOKO with a short position of Hubbell Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of YAOKO and Hubbell Incorporated.
Diversification Opportunities for YAOKO and Hubbell Incorporated
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YAOKO and Hubbell is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding YAOKO LTD and Hubbell Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubbell Incorporated and YAOKO 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 YAOKO LTD are associated (or correlated) with Hubbell Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubbell Incorporated has no effect on the direction of YAOKO i.e., YAOKO and Hubbell Incorporated go up and down completely randomly.
Pair Corralation between YAOKO and Hubbell Incorporated
Assuming the 90 days horizon YAOKO is expected to generate 2.23 times less return on investment than Hubbell Incorporated. But when comparing it to its historical volatility, YAOKO LTD is 1.26 times less risky than Hubbell Incorporated. It trades about 0.04 of its potential returns per unit of risk. Hubbell Incorporated is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 27,672 in Hubbell Incorporated on August 31, 2024 and sell it today you would earn a total of 15,528 from holding Hubbell Incorporated or generate 56.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YAOKO LTD vs. Hubbell Incorporated
Performance |
| Timeline |
| YAOKO LTD |
| Hubbell Incorporated |
YAOKO and Hubbell Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YAOKO and Hubbell Incorporated
The main advantage of trading using opposite YAOKO and Hubbell Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YAOKO position performs unexpectedly, Hubbell Incorporated 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 Hubbell Incorporated will offset losses from the drop in Hubbell Incorporated's long position.| YAOKO vs. Perdoceo Education | YAOKO vs. LPKF Laser Electronics | YAOKO vs. Jupiter Fund Management | YAOKO vs. Methode Electronics |
| Hubbell Incorporated vs. United Airlines Holdings | Hubbell Incorporated vs. Monster Beverage Corp | Hubbell Incorporated vs. MCEWEN MINING INC | Hubbell Incorporated vs. Molson Coors Beverage |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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