Correlation Between So Young and Ontrak
Can any of the company-specific risk be diversified away by investing in both So Young and Ontrak 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 Ontrak 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 Ontrak Inc, you can compare the effects of market volatilities on So Young and Ontrak 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 Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and Ontrak.
Diversification Opportunities for So Young and Ontrak
Very poor diversification
The 3 months correlation between So Young and Ontrak is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak Inc 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 Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of So Young i.e., So Young and Ontrak go up and down completely randomly.
Pair Corralation between So Young and Ontrak
If you would invest 86.00 in So Young International on September 2, 2024 and sell it today you would lose (3.00) from holding So Young International or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
So Young International vs. Ontrak Inc
Performance |
| Timeline |
| So Young International |
| Ontrak Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
So Young and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and Ontrak
The main advantage of trading using opposite So Young and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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