Correlation Between MoneyHero Limited and YY
Can any of the company-specific risk be diversified away by investing in both MoneyHero Limited 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 MoneyHero Limited and YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MoneyHero Limited Warrants and YY Inc Class, you can compare the effects of market volatilities on MoneyHero Limited 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 MoneyHero Limited with a short position of YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MoneyHero Limited and YY.
Diversification Opportunities for MoneyHero Limited and YY
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MoneyHero and YY is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MoneyHero Limited Warrants 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 MoneyHero Limited 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 MoneyHero Limited Warrants 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 MoneyHero Limited i.e., MoneyHero Limited and YY go up and down completely randomly.
Pair Corralation between MoneyHero Limited and YY
Assuming the 90 days horizon MoneyHero Limited Warrants is expected to generate 8.37 times more return on investment than YY. However, MoneyHero Limited is 8.37 times more volatile than YY Inc Class. It trades about 0.15 of its potential returns per unit of risk. YY Inc Class is currently generating about -0.06 per unit of risk. If you would invest 3.00 in MoneyHero Limited Warrants on August 26, 2024 and sell it today you would earn a total of 1.80 from holding MoneyHero Limited Warrants or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MoneyHero Limited Warrants vs. YY Inc Class
Performance |
| Timeline |
| MoneyHero Limited |
| YY Inc Class |
MoneyHero Limited and YY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MoneyHero Limited and YY
The main advantage of trading using opposite MoneyHero Limited and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyHero Limited 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.| MoneyHero Limited vs. Alphabet Inc Class C | MoneyHero Limited vs. Twilio Inc | MoneyHero Limited vs. Snap Inc | MoneyHero Limited vs. Baidu Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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