Correlation Between Grand Canyon and YUNFENG FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Grand Canyon and YUNFENG FINANCIAL 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 Grand Canyon and YUNFENG FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canyon Education and YUNFENG FINANCIAL GRP, you can compare the effects of market volatilities on Grand Canyon and YUNFENG FINANCIAL 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 Grand Canyon with a short position of YUNFENG FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canyon and YUNFENG FINANCIAL.
Diversification Opportunities for Grand Canyon and YUNFENG FINANCIAL
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and YUNFENG is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canyon Education and YUNFENG FINANCIAL GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YUNFENG FINANCIAL GRP and Grand Canyon 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 Grand Canyon Education are associated (or correlated) with YUNFENG FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YUNFENG FINANCIAL GRP has no effect on the direction of Grand Canyon i.e., Grand Canyon and YUNFENG FINANCIAL go up and down completely randomly.
Pair Corralation between Grand Canyon and YUNFENG FINANCIAL
Assuming the 90 days trading horizon Grand Canyon is expected to generate 7.57 times less return on investment than YUNFENG FINANCIAL. But when comparing it to its historical volatility, Grand Canyon Education is 6.88 times less risky than YUNFENG FINANCIAL. It trades about 0.2 of its potential returns per unit of risk. YUNFENG FINANCIAL GRP is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 9.75 in YUNFENG FINANCIAL GRP on November 4, 2024 and sell it today you would earn a total of 4.25 from holding YUNFENG FINANCIAL GRP or generate 43.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Canyon Education vs. YUNFENG FINANCIAL GRP
Performance |
| Timeline |
| Grand Canyon Education |
| YUNFENG FINANCIAL GRP |
Grand Canyon and YUNFENG FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canyon and YUNFENG FINANCIAL
The main advantage of trading using opposite Grand Canyon and YUNFENG FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canyon position performs unexpectedly, YUNFENG FINANCIAL 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 YUNFENG FINANCIAL will offset losses from the drop in YUNFENG FINANCIAL's long position.| Grand Canyon vs. Apollo Investment Corp | Grand Canyon vs. ONWARD MEDICAL BV | Grand Canyon vs. CDL INVESTMENT | Grand Canyon vs. CHRYSALIS INVESTMENTS LTD |
| YUNFENG FINANCIAL vs. MGIC INVESTMENT | YUNFENG FINANCIAL vs. SCOTT TECHNOLOGY | YUNFENG FINANCIAL vs. MACOM Technology Solutions | YUNFENG FINANCIAL vs. Virtus Investment Partners |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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