Correlation Between Yatsen Holding and European Wax
Can any of the company-specific risk be diversified away by investing in both Yatsen Holding and European Wax 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 European Wax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatsen Holding and European Wax Center, you can compare the effects of market volatilities on Yatsen Holding and European Wax 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 European Wax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatsen Holding and European Wax.
Diversification Opportunities for Yatsen Holding and European Wax
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yatsen and European is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Yatsen Holding and European Wax Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Wax Center 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 European Wax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Wax Center has no effect on the direction of Yatsen Holding i.e., Yatsen Holding and European Wax go up and down completely randomly.
Pair Corralation between Yatsen Holding and European Wax
Considering the 90-day investment horizon Yatsen Holding is expected to generate 1.33 times more return on investment than European Wax. However, Yatsen Holding is 1.33 times more volatile than European Wax Center. It trades about 0.01 of its potential returns per unit of risk. European Wax Center is currently generating about -0.04 per unit of risk. If you would invest 590.00 in Yatsen Holding on August 26, 2024 and sell it today you would lose (139.00) from holding Yatsen Holding or give up 23.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yatsen Holding vs. European Wax Center
Performance |
| Timeline |
| Yatsen Holding |
| European Wax Center |
Yatsen Holding and European Wax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatsen Holding and European Wax
The main advantage of trading using opposite Yatsen Holding and European Wax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatsen Holding position performs unexpectedly, European Wax 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 European Wax will offset losses from the drop in European Wax'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 |
| European Wax vs. Edgewell Personal Care | European Wax vs. Inter Parfums | European Wax vs. Henkel AG Co | European Wax vs. Mannatech Incorporated |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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