Correlation Between So Young and Schrodinger
Can any of the company-specific risk be diversified away by investing in both So Young and Schrodinger 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 Schrodinger 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 Schrodinger, you can compare the effects of market volatilities on So Young and Schrodinger 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 Schrodinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and Schrodinger.
Diversification Opportunities for So Young and Schrodinger
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between So Young and Schrodinger is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding So Young International and Schrodinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schrodinger 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 Schrodinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schrodinger has no effect on the direction of So Young i.e., So Young and Schrodinger go up and down completely randomly.
Pair Corralation between So Young and Schrodinger
Allowing for the 90-day total investment horizon So Young is expected to generate 1.95 times less return on investment than Schrodinger. In addition to that, So Young is 1.64 times more volatile than Schrodinger. It trades about 0.02 of its total potential returns per unit of risk. Schrodinger is currently generating about 0.06 per unit of volatility. If you would invest 2,054 in Schrodinger on September 3, 2024 and sell it today you would earn a total of 203.00 from holding Schrodinger or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. Schrodinger
Performance |
| Timeline |
| So Young International |
| Schrodinger |
So Young and Schrodinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and Schrodinger
The main advantage of trading using opposite So Young and Schrodinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young position performs unexpectedly, Schrodinger 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 Schrodinger will offset losses from the drop in Schrodinger'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 |
| Schrodinger vs. Veeva Systems Class | Schrodinger vs. Doximity | Schrodinger vs. American Well Corp | Schrodinger vs. GE HealthCare Technologies |
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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