Correlation Between Yunhong Green and Sally Beauty
Can any of the company-specific risk be diversified away by investing in both Yunhong Green and Sally Beauty 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 Yunhong Green and Sally Beauty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunhong Green CTI and Sally Beauty Holdings, you can compare the effects of market volatilities on Yunhong Green and Sally Beauty 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 Yunhong Green with a short position of Sally Beauty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunhong Green and Sally Beauty.
Diversification Opportunities for Yunhong Green and Sally Beauty
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yunhong and Sally is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Yunhong Green CTI and Sally Beauty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sally Beauty Holdings and Yunhong Green 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 Yunhong Green CTI are associated (or correlated) with Sally Beauty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sally Beauty Holdings has no effect on the direction of Yunhong Green i.e., Yunhong Green and Sally Beauty go up and down completely randomly.
Pair Corralation between Yunhong Green and Sally Beauty
Given the investment horizon of 90 days Yunhong Green is expected to generate 2.57 times less return on investment than Sally Beauty. In addition to that, Yunhong Green is 1.75 times more volatile than Sally Beauty Holdings. It trades about 0.0 of its total potential returns per unit of risk. Sally Beauty Holdings is currently generating about 0.01 per unit of volatility. If you would invest 1,462 in Sally Beauty Holdings on August 28, 2024 and sell it today you would lose (53.00) from holding Sally Beauty Holdings or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunhong Green CTI vs. Sally Beauty Holdings
Performance |
| Timeline |
| Yunhong Green CTI |
| Sally Beauty Holdings |
Yunhong Green and Sally Beauty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunhong Green and Sally Beauty
The main advantage of trading using opposite Yunhong Green and Sally Beauty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunhong Green position performs unexpectedly, Sally Beauty 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 Sally Beauty will offset losses from the drop in Sally Beauty's long position.| Yunhong Green vs. Amer Sports, | Yunhong Green vs. Brunswick | Yunhong Green vs. Ralph Lauren Corp | Yunhong Green vs. Under Armour C |
| Sally Beauty vs. Oriental Culture Holding | Sally Beauty vs. Hour Loop | Sally Beauty vs. Qurate Retail Series | Sally Beauty vs. Emerge Commerce |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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