Correlation Between United States and Yunhong Green
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and Yunhong Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Yunhong Green CTI, you can compare the effects of market volatilities on United States 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 United States with a short position of Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Yunhong Green.
Diversification Opportunities for United States and Yunhong Green
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Yunhong is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel 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 United States 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 United States Steel 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 United States i.e., United States and Yunhong Green go up and down completely randomly.
Pair Corralation between United States and Yunhong Green
Taking into account the 90-day investment horizon United States Steel is expected to generate 0.75 times more return on investment than Yunhong Green. However, United States Steel is 1.33 times less risky than Yunhong Green. It trades about 0.16 of its potential returns per unit of risk. Yunhong Green CTI is currently generating about -0.12 per unit of risk. If you would invest 3,489 in United States Steel on September 3, 2024 and sell it today you would earn a total of 588.00 from holding United States Steel or generate 16.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Steel vs. Yunhong Green CTI
Performance |
| Timeline |
| United States Steel |
| Yunhong Green CTI |
United States and Yunhong Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Yunhong Green
The main advantage of trading using opposite United States and Yunhong Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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