Correlation Between Supercom and Youngevity International
Can any of the company-specific risk be diversified away by investing in both Supercom and Youngevity 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 Supercom and Youngevity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and Youngevity International PR, you can compare the effects of market volatilities on Supercom and Youngevity 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 Supercom with a short position of Youngevity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and Youngevity International.
Diversification Opportunities for Supercom and Youngevity International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Supercom and Youngevity is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and Youngevity International PR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngevity International and Supercom 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 Supercom are associated (or correlated) with Youngevity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngevity International has no effect on the direction of Supercom i.e., Supercom and Youngevity International go up and down completely randomly.
Pair Corralation between Supercom and Youngevity International
Given the investment horizon of 90 days Supercom is expected to under-perform the Youngevity International. But the stock apears to be less risky and, when comparing its historical volatility, Supercom is 2.25 times less risky than Youngevity International. The stock trades about -0.02 of its potential returns per unit of risk. The Youngevity International PR is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 55.00 in Youngevity International PR on September 2, 2024 and sell it today you would lose (42.00) from holding Youngevity International PR or give up 76.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.85% |
| Values | Daily Returns |
Supercom vs. Youngevity International PR
Performance |
| Timeline |
| Supercom |
| Youngevity International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Supercom and Youngevity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and Youngevity International
The main advantage of trading using opposite Supercom and Youngevity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom position performs unexpectedly, Youngevity 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 Youngevity International will offset losses from the drop in Youngevity International's long position.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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