Correlation Between YanGuFang International and Whole Earth
Can any of the company-specific risk be diversified away by investing in both YanGuFang International and Whole Earth 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 Whole Earth 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 Whole Earth Brands, you can compare the effects of market volatilities on YanGuFang International and Whole Earth 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 Whole Earth. Check out your portfolio center. Please also check ongoing floating volatility patterns of YanGuFang International and Whole Earth.
Diversification Opportunities for YanGuFang International and Whole Earth
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YanGuFang and Whole is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding YanGuFang International Group and Whole Earth Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whole Earth Brands 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 Whole Earth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whole Earth Brands has no effect on the direction of YanGuFang International i.e., YanGuFang International and Whole Earth go up and down completely randomly.
Pair Corralation between YanGuFang International and Whole Earth
If you would invest (100.00) in Whole Earth Brands on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Whole Earth Brands or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
YanGuFang International Group vs. Whole Earth Brands
Performance |
| Timeline |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Whole Earth Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
YanGuFang International and Whole Earth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YanGuFang International and Whole Earth
The main advantage of trading using opposite YanGuFang International and Whole Earth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YanGuFang International position performs unexpectedly, Whole Earth 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 Whole Earth will offset losses from the drop in Whole Earth's long position.| YanGuFang International vs. Rackspace Technology | YanGuFang International vs. Kaiser Aluminum | YanGuFang International vs. IPG Photonics | YanGuFang International vs. Datadog |
| Whole Earth vs. Seneca Foods Corp | Whole Earth vs. Lifeway Foods | Whole Earth vs. John B Sanfilippo | Whole Earth vs. Real Good Food |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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