Correlation Between Sally Beauty and Yunhong Green
Can any of the company-specific risk be diversified away by investing in both Sally Beauty and Yunhong Green 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 Sally Beauty and Yunhong Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sally Beauty Holdings and Yunhong Green CTI, you can compare the effects of market volatilities on Sally Beauty and Yunhong Green 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 Sally Beauty with a short position of Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sally Beauty and Yunhong Green.
Diversification Opportunities for Sally Beauty and Yunhong Green
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sally and Yunhong is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sally Beauty Holdings and Yunhong Green CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunhong Green CTI and Sally Beauty 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 Sally Beauty Holdings are associated (or correlated) with Yunhong Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunhong Green CTI has no effect on the direction of Sally Beauty i.e., Sally Beauty and Yunhong Green go up and down completely randomly.
Pair Corralation between Sally Beauty and Yunhong Green
Considering the 90-day investment horizon Sally Beauty Holdings is expected to generate 0.57 times more return on investment than Yunhong Green. However, Sally Beauty Holdings is 1.75 times less risky than Yunhong Green. It trades about 0.01 of its potential returns per unit of risk. Yunhong Green CTI is currently generating about 0.0 per unit of risk. If you would invest 1,462 in Sally Beauty Holdings on August 28, 2024 and sell it today you would lose (53.00) from holding Sally Beauty Holdings or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sally Beauty Holdings vs. Yunhong Green CTI
Performance |
| Timeline |
| Sally Beauty Holdings |
| Yunhong Green CTI |
Sally Beauty and Yunhong Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sally Beauty and Yunhong Green
The main advantage of trading using opposite Sally Beauty and Yunhong Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sally Beauty position performs unexpectedly, Yunhong Green 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 Yunhong Green will offset losses from the drop in Yunhong Green's long position.| Sally Beauty vs. Oriental Culture Holding | Sally Beauty vs. Hour Loop | Sally Beauty vs. Qurate Retail Series | Sally Beauty vs. Emerge Commerce |
| Yunhong Green vs. Amer Sports, | Yunhong Green vs. Brunswick | Yunhong Green vs. Ralph Lauren Corp | Yunhong Green vs. Under Armour C |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |