Correlation Between YXTCOM GROUP and Coty
Can any of the company-specific risk be diversified away by investing in both YXTCOM GROUP and Coty 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 YXTCOM GROUP and Coty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YXTCOM GROUP HOLDING and Coty Inc, you can compare the effects of market volatilities on YXTCOM GROUP and Coty 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 YXTCOM GROUP with a short position of Coty. Check out your portfolio center. Please also check ongoing floating volatility patterns of YXTCOM GROUP and Coty.
Diversification Opportunities for YXTCOM GROUP and Coty
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YXTCOM and Coty is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding YXTCOM GROUP HOLDING and Coty Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coty Inc and YXTCOM GROUP 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 YXTCOM GROUP HOLDING are associated (or correlated) with Coty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coty Inc has no effect on the direction of YXTCOM GROUP i.e., YXTCOM GROUP and Coty go up and down completely randomly.
Pair Corralation between YXTCOM GROUP and Coty
Considering the 90-day investment horizon YXTCOM GROUP HOLDING is expected to generate 1.69 times more return on investment than Coty. However, YXTCOM GROUP is 1.69 times more volatile than Coty Inc. It trades about -0.02 of its potential returns per unit of risk. Coty Inc is currently generating about -0.42 per unit of risk. If you would invest 203.00 in YXTCOM GROUP HOLDING on November 22, 2024 and sell it today you would lose (10.00) from holding YXTCOM GROUP HOLDING or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YXTCOM GROUP HOLDING vs. Coty Inc
Performance |
| Timeline |
| YXTCOM GROUP HOLDING |
| Coty Inc |
YXTCOM GROUP and Coty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YXTCOM GROUP and Coty
The main advantage of trading using opposite YXTCOM GROUP and Coty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YXTCOM GROUP position performs unexpectedly, Coty 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 Coty will offset losses from the drop in Coty's long position.| YXTCOM GROUP vs. Academy Sports Outdoors | YXTCOM GROUP vs. MobileSmith | YXTCOM GROUP vs. flyExclusive, | YXTCOM GROUP vs. Delek Logistics Partners |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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