Correlation Between IPower and Yunji
Can any of the company-specific risk be diversified away by investing in both IPower 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 IPower and Yunji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPower Inc and Yunji Inc, you can compare the effects of market volatilities on IPower 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 IPower with a short position of Yunji. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPower and Yunji.
Diversification Opportunities for IPower and Yunji
Very weak diversification
The 3 months correlation between IPower and Yunji is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iPower Inc and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc and IPower 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 iPower Inc 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 IPower i.e., IPower and Yunji go up and down completely randomly.
Pair Corralation between IPower and Yunji
Considering the 90-day investment horizon iPower Inc is expected to under-perform the Yunji. In addition to that, IPower is 1.46 times more volatile than Yunji Inc. It trades about -0.29 of its total potential returns per unit of risk. Yunji Inc is currently generating about -0.07 per unit of volatility. If you would invest 207.00 in Yunji Inc on August 28, 2024 and sell it today you would lose (31.00) from holding Yunji Inc or give up 14.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iPower Inc vs. Yunji Inc
Performance |
| Timeline |
| iPower Inc |
| Yunji Inc |
IPower and Yunji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPower and Yunji
The main advantage of trading using opposite IPower and Yunji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPower 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.| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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