Correlation Between Yatsen Holding and Big Tree
Can any of the company-specific risk be diversified away by investing in both Yatsen Holding and Big Tree 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 Yatsen Holding and Big Tree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatsen Holding and Big Tree Cloud, you can compare the effects of market volatilities on Yatsen Holding and Big Tree 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 Yatsen Holding with a short position of Big Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatsen Holding and Big Tree.
Diversification Opportunities for Yatsen Holding and Big Tree
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yatsen and Big is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yatsen Holding and Big Tree Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Tree Cloud and Yatsen Holding 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 Yatsen Holding are associated (or correlated) with Big Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Tree Cloud has no effect on the direction of Yatsen Holding i.e., Yatsen Holding and Big Tree go up and down completely randomly.
Pair Corralation between Yatsen Holding and Big Tree
Considering the 90-day investment horizon Yatsen Holding is expected to generate 0.23 times more return on investment than Big Tree. However, Yatsen Holding is 4.26 times less risky than Big Tree. It trades about 0.34 of its potential returns per unit of risk. Big Tree Cloud is currently generating about 0.05 per unit of risk. If you would invest 370.00 in Yatsen Holding on August 28, 2024 and sell it today you would earn a total of 83.00 from holding Yatsen Holding or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yatsen Holding vs. Big Tree Cloud
Performance |
| Timeline |
| Yatsen Holding |
| Big Tree Cloud |
Yatsen Holding and Big Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatsen Holding and Big Tree
The main advantage of trading using opposite Yatsen Holding and Big Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatsen Holding position performs unexpectedly, Big Tree 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 Big Tree will offset losses from the drop in Big Tree's long position.| Yatsen Holding vs. 17 Education Technology | Yatsen Holding vs. Ke Holdings | Yatsen Holding vs. Miniso Group Holding | Yatsen Holding vs. Dada Nexus |
| Big Tree vs. Colgate Palmolive | Big Tree vs. Estee Lauder Companies | Big Tree vs. Procter Gamble | Big Tree vs. United Guardian |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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