Correlation Between Kuaishou Technology and YY
Can any of the company-specific risk be diversified away by investing in both Kuaishou Technology and YY 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 Kuaishou Technology and YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuaishou Technology and YY Inc Class, you can compare the effects of market volatilities on Kuaishou Technology and YY 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 Kuaishou Technology with a short position of YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuaishou Technology and YY.
Diversification Opportunities for Kuaishou Technology and YY
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kuaishou and YY is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kuaishou Technology and YY Inc Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Inc Class and Kuaishou Technology 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 Kuaishou Technology are associated (or correlated) with YY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Inc Class has no effect on the direction of Kuaishou Technology i.e., Kuaishou Technology and YY go up and down completely randomly.
Pair Corralation between Kuaishou Technology and YY
Assuming the 90 days horizon Kuaishou Technology is expected to under-perform the YY. In addition to that, Kuaishou Technology is 1.29 times more volatile than YY Inc Class. It trades about -0.04 of its total potential returns per unit of risk. YY Inc Class is currently generating about 0.11 per unit of volatility. If you would invest 2,872 in YY Inc Class on November 4, 2024 and sell it today you would earn a total of 1,463 from holding YY Inc Class or generate 50.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.2% |
| Values | Daily Returns |
Kuaishou Technology vs. YY Inc Class
Performance |
| Timeline |
| Kuaishou Technology |
| YY Inc Class |
Kuaishou Technology and YY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuaishou Technology and YY
The main advantage of trading using opposite Kuaishou Technology and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuaishou Technology position performs unexpectedly, YY 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 YY will offset losses from the drop in YY's long position.| Kuaishou Technology vs. Tencent Holdings | Kuaishou Technology vs. Trivago NV | Kuaishou Technology vs. YY Inc Class | Kuaishou Technology vs. DouYu International Holdings |
| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |