Correlation Between Yield10 Bioscience and China Green
Can any of the company-specific risk be diversified away by investing in both Yield10 Bioscience and China Green 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 Yield10 Bioscience and China Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yield10 Bioscience and China Green Agriculture, you can compare the effects of market volatilities on Yield10 Bioscience and China Green 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 Yield10 Bioscience with a short position of China Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yield10 Bioscience and China Green.
Diversification Opportunities for Yield10 Bioscience and China Green
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yield10 and China is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yield10 Bioscience and China Green Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Green Agriculture and Yield10 Bioscience 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 Yield10 Bioscience are associated (or correlated) with China Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Green Agriculture has no effect on the direction of Yield10 Bioscience i.e., Yield10 Bioscience and China Green go up and down completely randomly.
Pair Corralation between Yield10 Bioscience and China Green
If you would invest 190.00 in Yield10 Bioscience on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Yield10 Bioscience or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Yield10 Bioscience vs. China Green Agriculture
Performance |
| Timeline |
| Yield10 Bioscience |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Green Agriculture |
Yield10 Bioscience and China Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yield10 Bioscience and China Green
The main advantage of trading using opposite Yield10 Bioscience and China Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yield10 Bioscience position performs unexpectedly, China Green 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 China Green will offset losses from the drop in China Green's long position.| Yield10 Bioscience vs. KS AG DRC | Yield10 Bioscience vs. Intrepid Potash | Yield10 Bioscience vs. China Green Agriculture | Yield10 Bioscience vs. Bioceres Crop Solutions |
| China Green vs. KS AG DRC | China Green vs. Intrepid Potash | China Green vs. Bioceres Crop Solutions | China Green vs. American Vanguard |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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