Correlation Between So Young and Mitesco
Can any of the company-specific risk be diversified away by investing in both So Young and Mitesco 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 So Young and Mitesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and Mitesco, you can compare the effects of market volatilities on So Young and Mitesco 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 So Young with a short position of Mitesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and Mitesco.
Diversification Opportunities for So Young and Mitesco
Modest diversification
The 3 months correlation between So Young and Mitesco is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and Mitesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitesco and So Young 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 So Young International are associated (or correlated) with Mitesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitesco has no effect on the direction of So Young i.e., So Young and Mitesco go up and down completely randomly.
Pair Corralation between So Young and Mitesco
Allowing for the 90-day total investment horizon So Young International is expected to under-perform the Mitesco. But the stock apears to be less risky and, when comparing its historical volatility, So Young International is 6.65 times less risky than Mitesco. The stock trades about -0.02 of its potential returns per unit of risk. The Mitesco is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Mitesco on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Mitesco or generate 130.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. Mitesco
Performance |
| Timeline |
| So Young International |
| Mitesco |
So Young and Mitesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and Mitesco
The main advantage of trading using opposite So Young and Mitesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, Mitesco 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 Mitesco will offset losses from the drop in Mitesco's long position.| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
| Mitesco vs. GE HealthCare Technologies | Mitesco vs. Veeva Systems Class | Mitesco vs. Solventum Corp | Mitesco vs. Doximity |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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