Correlation Between CareCloud and So Young
Can any of the company-specific risk be diversified away by investing in both CareCloud and So Young 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 CareCloud and So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CareCloud and So Young International, you can compare the effects of market volatilities on CareCloud and So Young 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 CareCloud with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareCloud and So Young.
Diversification Opportunities for CareCloud and So Young
Very good diversification
The 3 months correlation between CareCloud and So Young is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CareCloud and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and CareCloud 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 CareCloud are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of CareCloud i.e., CareCloud and So Young go up and down completely randomly.
Pair Corralation between CareCloud and So Young
Assuming the 90 days horizon CareCloud is expected to generate 2.98 times less return on investment than So Young. But when comparing it to its historical volatility, CareCloud is 2.35 times less risky than So Young. It trades about 0.23 of its potential returns per unit of risk. So Young International is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 77.00 in So Young International on October 24, 2024 and sell it today you would earn a total of 16.00 from holding So Young International or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CareCloud vs. So Young International
Performance |
| Timeline |
| CareCloud |
| So Young International |
CareCloud and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CareCloud and So Young
The main advantage of trading using opposite CareCloud and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareCloud position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| CareCloud vs. CareCloud | CareCloud vs. Fortress Biotech Pref | CareCloud vs. FAT Brands | CareCloud vs. CareCloud |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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