Correlation Between Kimberly Clark and Yatsen Holding
Can any of the company-specific risk be diversified away by investing in both Kimberly Clark and Yatsen Holding 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 Kimberly Clark and Yatsen Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimberly Clark and Yatsen Holding, you can compare the effects of market volatilities on Kimberly Clark and Yatsen Holding 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 Kimberly Clark with a short position of Yatsen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimberly Clark and Yatsen Holding.
Diversification Opportunities for Kimberly Clark and Yatsen Holding
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kimberly and Yatsen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kimberly Clark and Yatsen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatsen Holding and Kimberly Clark 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 Kimberly Clark are associated (or correlated) with Yatsen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatsen Holding has no effect on the direction of Kimberly Clark i.e., Kimberly Clark and Yatsen Holding go up and down completely randomly.
Pair Corralation between Kimberly Clark and Yatsen Holding
Considering the 90-day investment horizon Kimberly Clark is expected to generate 2.44 times less return on investment than Yatsen Holding. But when comparing it to its historical volatility, Kimberly Clark is 4.4 times less risky than Yatsen Holding. It trades about 0.02 of its potential returns per unit of risk. Yatsen Holding is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Yatsen Holding on August 28, 2024 and sell it today you would lose (126.00) from holding Yatsen Holding or give up 21.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimberly Clark vs. Yatsen Holding
Performance |
| Timeline |
| Kimberly Clark |
| Yatsen Holding |
Kimberly Clark and Yatsen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimberly Clark and Yatsen Holding
The main advantage of trading using opposite Kimberly Clark and Yatsen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimberly Clark position performs unexpectedly, Yatsen Holding 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 Yatsen Holding will offset losses from the drop in Yatsen Holding's long position.| Kimberly Clark vs. Unilever PLC ADR | Kimberly Clark vs. Estee Lauder Companies | Kimberly Clark vs. ELF Beauty | Kimberly Clark vs. Coty Inc |
| Yatsen Holding vs. 17 Education Technology | Yatsen Holding vs. Ke Holdings | Yatsen Holding vs. Miniso Group Holding | Yatsen Holding vs. Dada Nexus |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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