Correlation Between YanGuFang International and Blue Star
Can any of the company-specific risk be diversified away by investing in both YanGuFang International and Blue Star 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 YanGuFang International and Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YanGuFang International Group and Blue Star Foods, you can compare the effects of market volatilities on YanGuFang International and Blue Star 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 YanGuFang International with a short position of Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of YanGuFang International and Blue Star.
Diversification Opportunities for YanGuFang International and Blue Star
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YanGuFang and Blue is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding YanGuFang International Group and Blue Star Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Foods and YanGuFang International 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 YanGuFang International Group are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Foods has no effect on the direction of YanGuFang International i.e., YanGuFang International and Blue Star go up and down completely randomly.
Pair Corralation between YanGuFang International and Blue Star
If you would invest 0.18 in YanGuFang International Group on August 30, 2024 and sell it today you would earn a total of 0.00 from holding YanGuFang International Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
YanGuFang International Group vs. Blue Star Foods
Performance |
| Timeline |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blue Star Foods |
YanGuFang International and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YanGuFang International and Blue Star
The main advantage of trading using opposite YanGuFang International and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YanGuFang International position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| YanGuFang International vs. Rackspace Technology | YanGuFang International vs. Kaiser Aluminum | YanGuFang International vs. IPG Photonics | YanGuFang International vs. Datadog |
| Blue Star vs. Better Choice | Blue Star vs. Stryve Foods | Blue Star vs. BioAdaptives | Blue Star vs. Beyond Oil |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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