Correlation Between Park Ohio and YanGuFang International
Can any of the company-specific risk be diversified away by investing in both Park Ohio and YanGuFang International 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 Park Ohio and YanGuFang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park Ohio Holdings and YanGuFang International Group, you can compare the effects of market volatilities on Park Ohio and YanGuFang International 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 Park Ohio with a short position of YanGuFang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Ohio and YanGuFang International.
Diversification Opportunities for Park Ohio and YanGuFang International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and YanGuFang is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Park Ohio Holdings and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International and Park Ohio 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 Park Ohio Holdings are associated (or correlated) with YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Park Ohio i.e., Park Ohio and YanGuFang International go up and down completely randomly.
Pair Corralation between Park Ohio and YanGuFang International
Given the investment horizon of 90 days Park Ohio Holdings is expected to generate 0.32 times more return on investment than YanGuFang International. However, Park Ohio Holdings is 3.15 times less risky than YanGuFang International. It trades about 0.08 of its potential returns per unit of risk. YanGuFang International Group is currently generating about -0.12 per unit of risk. If you would invest 1,159 in Park Ohio Holdings on September 3, 2024 and sell it today you would earn a total of 2,058 from holding Park Ohio Holdings or generate 177.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.79% |
| Values | Daily Returns |
Park Ohio Holdings vs. YanGuFang International Group
Performance |
| Timeline |
| Park Ohio Holdings |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Park Ohio and YanGuFang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Ohio and YanGuFang International
The main advantage of trading using opposite Park Ohio and YanGuFang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Ohio position performs unexpectedly, YanGuFang International 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 YanGuFang International will offset losses from the drop in YanGuFang International's long position.| Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
| YanGuFang International vs. Acumen Pharmaceuticals | YanGuFang International vs. Catalyst Pharmaceuticals | YanGuFang International vs. Xponential Fitness | YanGuFang International vs. RadNet 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |