Correlation Between Pear Therapeutics and So Young
Can any of the company-specific risk be diversified away by investing in both Pear Therapeutics and So Young 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 Pear Therapeutics and So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Therapeutics and So Young International, you can compare the effects of market volatilities on Pear Therapeutics and So Young 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 Pear Therapeutics with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Therapeutics and So Young.
Diversification Opportunities for Pear Therapeutics and So Young
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pear and So Young is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pear Therapeutics and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and Pear Therapeutics 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 Pear Therapeutics are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of Pear Therapeutics i.e., Pear Therapeutics and So Young go up and down completely randomly.
Pair Corralation between Pear Therapeutics and So Young
If you would invest 77.00 in So Young International on October 23, 2024 and sell it today you would earn a total of 16.00 from holding So Young International or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pear Therapeutics vs. So Young International
Performance |
| Timeline |
| Pear Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| So Young International |
Pear Therapeutics and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Therapeutics and So Young
The main advantage of trading using opposite Pear Therapeutics and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Therapeutics position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| Pear Therapeutics vs. HNI Corp | Pear Therapeutics vs. Willscot Mobile Mini | Pear Therapeutics vs. Vestis | Pear Therapeutics vs. Highway Holdings Limited |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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