Correlation Between Yellow Cake and ZW Data
Can any of the company-specific risk be diversified away by investing in both Yellow Cake and ZW Data 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 Yellow Cake and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yellow Cake plc and ZW Data Action, you can compare the effects of market volatilities on Yellow Cake and ZW Data 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 Yellow Cake with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yellow Cake and ZW Data.
Diversification Opportunities for Yellow Cake and ZW Data
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yellow and CNET is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yellow Cake plc and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and Yellow Cake 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 Yellow Cake plc are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Yellow Cake i.e., Yellow Cake and ZW Data go up and down completely randomly.
Pair Corralation between Yellow Cake and ZW Data
Assuming the 90 days horizon Yellow Cake plc is expected to generate 0.53 times more return on investment than ZW Data. However, Yellow Cake plc is 1.88 times less risky than ZW Data. It trades about 0.12 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.06 per unit of risk. If you would invest 692.00 in Yellow Cake plc on November 13, 2025 and sell it today you would earn a total of 225.00 from holding Yellow Cake plc or generate 32.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yellow Cake plc vs. ZW Data Action
Performance |
| Timeline |
| Yellow Cake plc |
| ZW Data Action |
Yellow Cake and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yellow Cake and ZW Data
The main advantage of trading using opposite Yellow Cake and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yellow Cake position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| Yellow Cake vs. Xinyi Solar Holdings | Yellow Cake vs. Whitehaven Coal Limited | Yellow Cake vs. Rubis SCA ADR | Yellow Cake vs. Tatneft ADR |
| ZW Data vs. Baosheng Media Group | ZW Data vs. Cheetah Mobile | ZW Data vs. Onfolio Holdings | ZW Data vs. Star Fashion Culture |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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