Correlation Between Yunji and Overstockcom
Can any of the company-specific risk be diversified away by investing in both Yunji and Overstockcom 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 Yunji and Overstockcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunji Inc and Overstockcom, you can compare the effects of market volatilities on Yunji and Overstockcom 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 Yunji with a short position of Overstockcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunji and Overstockcom.
Diversification Opportunities for Yunji and Overstockcom
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yunji and Overstockcom is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yunji Inc and Overstockcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Overstockcom and Yunji 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 Yunji Inc are associated (or correlated) with Overstockcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Overstockcom has no effect on the direction of Yunji i.e., Yunji and Overstockcom go up and down completely randomly.
Pair Corralation between Yunji and Overstockcom
If you would invest 3,092 in Overstockcom on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Overstockcom or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Yunji Inc vs. Overstockcom
Performance |
| Timeline |
| Yunji Inc |
| Overstockcom |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yunji and Overstockcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunji and Overstockcom
The main advantage of trading using opposite Yunji and Overstockcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunji position performs unexpectedly, Overstockcom 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 Overstockcom will offset losses from the drop in Overstockcom's long position.The idea behind Yunji Inc and Overstockcom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Overstockcom vs. Etsy Inc | Overstockcom vs. Chewy Inc | Overstockcom vs. PDD Holdings | Overstockcom vs. Sea |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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