Correlation Between Scholastic and Yunhong Green
Can any of the company-specific risk be diversified away by investing in both Scholastic 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 Scholastic and Yunhong Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scholastic and Yunhong Green CTI, you can compare the effects of market volatilities on Scholastic 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 Scholastic with a short position of Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scholastic and Yunhong Green.
Diversification Opportunities for Scholastic and Yunhong Green
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scholastic and Yunhong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Scholastic 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 Scholastic 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 Scholastic 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 Scholastic i.e., Scholastic and Yunhong Green go up and down completely randomly.
Pair Corralation between Scholastic and Yunhong Green
Given the investment horizon of 90 days Scholastic is expected to under-perform the Yunhong Green. But the stock apears to be less risky and, when comparing its historical volatility, Scholastic is 2.08 times less risky than Yunhong Green. The stock trades about -0.01 of its potential returns per unit of risk. The Yunhong Green CTI is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Yunhong Green CTI on September 3, 2024 and sell it today you would lose (15.00) from holding Yunhong Green CTI or give up 18.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scholastic vs. Yunhong Green CTI
Performance |
| Timeline |
| Scholastic |
| Yunhong Green CTI |
Scholastic and Yunhong Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scholastic and Yunhong Green
The main advantage of trading using opposite Scholastic and Yunhong Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scholastic 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.| Scholastic vs. New York Times | Scholastic vs. Gannett Co | Scholastic vs. Lee Enterprises Incorporated | Scholastic vs. Pearson PLC ADR |
| Yunhong Green vs. Simon Property Group | Yunhong Green vs. Sea | Yunhong Green vs. Scholastic | Yunhong Green vs. WEBTOON Entertainment Common |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |