Correlation Between Sabio Holdings and YY
Can any of the company-specific risk be diversified away by investing in both Sabio Holdings 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 Sabio Holdings and YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabio Holdings and YY Inc Class, you can compare the effects of market volatilities on Sabio Holdings 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 Sabio Holdings with a short position of YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabio Holdings and YY.
Diversification Opportunities for Sabio Holdings and YY
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabio and YY is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sabio Holdings 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 Sabio Holdings 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 Sabio Holdings 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 Sabio Holdings i.e., Sabio Holdings and YY go up and down completely randomly.
Pair Corralation between Sabio Holdings and YY
Assuming the 90 days horizon Sabio Holdings is expected to generate 5.33 times less return on investment than YY. In addition to that, Sabio Holdings is 2.02 times more volatile than YY Inc Class. It trades about 0.0 of its total potential returns per unit of risk. YY Inc Class is currently generating about 0.03 per unit of volatility. If you would invest 2,951 in YY Inc Class on August 28, 2024 and sell it today you would earn a total of 524.00 from holding YY Inc Class or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabio Holdings vs. YY Inc Class
Performance |
| Timeline |
| Sabio Holdings |
| YY Inc Class |
Sabio Holdings and YY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabio Holdings and YY
The main advantage of trading using opposite Sabio Holdings and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabio Holdings 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.| Sabio Holdings vs. Trivago NV | Sabio Holdings vs. YY Inc Class | Sabio Holdings vs. DouYu International Holdings | Sabio Holdings vs. Tencent Music Entertainment |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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