Correlation Between YUNFENG FINANCIAL and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both YUNFENG FINANCIAL and Grand Canyon 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 YUNFENG FINANCIAL and Grand Canyon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YUNFENG FINANCIAL GRP and Grand Canyon Education, you can compare the effects of market volatilities on YUNFENG FINANCIAL and Grand Canyon 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 YUNFENG FINANCIAL with a short position of Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of YUNFENG FINANCIAL and Grand Canyon.
Diversification Opportunities for YUNFENG FINANCIAL and Grand Canyon
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YUNFENG and Grand is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding YUNFENG FINANCIAL GRP and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education and YUNFENG FINANCIAL 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 YUNFENG FINANCIAL GRP are associated (or correlated) with Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of YUNFENG FINANCIAL i.e., YUNFENG FINANCIAL and Grand Canyon go up and down completely randomly.
Pair Corralation between YUNFENG FINANCIAL and Grand Canyon
Assuming the 90 days trading horizon YUNFENG FINANCIAL GRP is expected to generate 6.88 times more return on investment than Grand Canyon. However, YUNFENG FINANCIAL is 6.88 times more volatile than Grand Canyon Education. It trades about 0.22 of its potential returns per unit of risk. Grand Canyon Education is currently generating about 0.2 per unit of risk. 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 |
YUNFENG FINANCIAL GRP vs. Grand Canyon Education
Performance |
| Timeline |
| YUNFENG FINANCIAL GRP |
| Grand Canyon Education |
YUNFENG FINANCIAL and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YUNFENG FINANCIAL and Grand Canyon
The main advantage of trading using opposite YUNFENG FINANCIAL and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YUNFENG FINANCIAL position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| YUNFENG FINANCIAL vs. MGIC INVESTMENT | YUNFENG FINANCIAL vs. SCOTT TECHNOLOGY | YUNFENG FINANCIAL vs. MACOM Technology Solutions | YUNFENG FINANCIAL vs. Virtus Investment Partners |
| Grand Canyon vs. Apollo Investment Corp | Grand Canyon vs. ONWARD MEDICAL BV | Grand Canyon vs. CDL INVESTMENT | Grand Canyon vs. CHRYSALIS INVESTMENTS LTD |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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