Correlation Between Emerge Commerce and Yunji
Can any of the company-specific risk be diversified away by investing in both Emerge Commerce and Yunji 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 Emerge Commerce and Yunji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerge Commerce and Yunji Inc, you can compare the effects of market volatilities on Emerge Commerce and Yunji 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 Emerge Commerce with a short position of Yunji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerge Commerce and Yunji.
Diversification Opportunities for Emerge Commerce and Yunji
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emerge and Yunji is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Emerge Commerce and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc and Emerge Commerce 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 Emerge Commerce are associated (or correlated) with Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of Emerge Commerce i.e., Emerge Commerce and Yunji go up and down completely randomly.
Pair Corralation between Emerge Commerce and Yunji
Assuming the 90 days horizon Emerge Commerce is expected to generate 6.45 times more return on investment than Yunji. However, Emerge Commerce is 6.45 times more volatile than Yunji Inc. It trades about 0.05 of its potential returns per unit of risk. Yunji Inc is currently generating about -0.02 per unit of risk. If you would invest 6.00 in Emerge Commerce on January 13, 2025 and sell it today you would lose (2.00) from holding Emerge Commerce or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerge Commerce vs. Yunji Inc
Performance |
| Timeline |
| Emerge Commerce |
| Yunji Inc |
Emerge Commerce and Yunji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerge Commerce and Yunji
The main advantage of trading using opposite Emerge Commerce and Yunji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerge Commerce position performs unexpectedly, Yunji 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 Yunji will offset losses from the drop in Yunji's long position.| Emerge Commerce vs. Phonex Inc | Emerge Commerce vs. Delivery Hero SE | Emerge Commerce vs. 1StdibsCom | Emerge Commerce vs. Natural Health Trend |
| Yunji vs. Hour Loop | Yunji vs. Oriental Culture Holding | Yunji vs. Jeffs Brands | Yunji vs. D MARKET Electronic Services |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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