Correlation Between Yellow Pages and Cross Country
Can any of the company-specific risk be diversified away by investing in both Yellow Pages and Cross Country 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 Pages and Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yellow Pages Limited and Cross Country Healthcare, you can compare the effects of market volatilities on Yellow Pages and Cross Country 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 Pages with a short position of Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yellow Pages and Cross Country.
Diversification Opportunities for Yellow Pages and Cross Country
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yellow and Cross is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Yellow Pages Limited and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare and Yellow Pages 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 Pages Limited are associated (or correlated) with Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Yellow Pages i.e., Yellow Pages and Cross Country go up and down completely randomly.
Pair Corralation between Yellow Pages and Cross Country
Assuming the 90 days horizon Yellow Pages Limited is expected to generate 0.54 times more return on investment than Cross Country. However, Yellow Pages Limited is 1.87 times less risky than Cross Country. It trades about 0.02 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.06 per unit of risk. If you would invest 676.00 in Yellow Pages Limited on August 31, 2024 and sell it today you would earn a total of 54.00 from holding Yellow Pages Limited or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Yellow Pages Limited vs. Cross Country Healthcare
Performance |
| Timeline |
| Yellow Pages Limited |
| Cross Country Healthcare |
Yellow Pages and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yellow Pages and Cross Country
The main advantage of trading using opposite Yellow Pages and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yellow Pages position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Yellow Pages vs. TROPHY GAMES DEV | Yellow Pages vs. Air Transport Services | Yellow Pages vs. QIIWI GAMES AB | Yellow Pages vs. Media and Games |
| Cross Country vs. Korn Ferry | Cross Country vs. Hays plc | Cross Country vs. Superior Plus Corp | Cross Country vs. Origin Agritech |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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