Correlation Between YXTCOM GROUP and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both YXTCOM GROUP and Oneconnect Financial 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 Oneconnect Financial 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 Oneconnect Financial Technology, you can compare the effects of market volatilities on YXTCOM GROUP and Oneconnect Financial 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 Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of YXTCOM GROUP and Oneconnect Financial.
Diversification Opportunities for YXTCOM GROUP and Oneconnect Financial
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YXTCOM and Oneconnect is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding YXTCOM GROUP HOLDING and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial 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 Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of YXTCOM GROUP i.e., YXTCOM GROUP and Oneconnect Financial go up and down completely randomly.
Pair Corralation between YXTCOM GROUP and Oneconnect Financial
Considering the 90-day investment horizon YXTCOM GROUP HOLDING is expected to generate 2.02 times more return on investment than Oneconnect Financial. However, YXTCOM GROUP is 2.02 times more volatile than Oneconnect Financial Technology. It trades about 0.05 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about -0.06 per unit of risk. If you would invest 274.00 in YXTCOM GROUP HOLDING on August 29, 2024 and sell it today you would earn a total of 0.00 from holding YXTCOM GROUP HOLDING or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YXTCOM GROUP HOLDING vs. Oneconnect Financial Technolog
Performance |
| Timeline |
| YXTCOM GROUP HOLDING |
| Oneconnect Financial |
YXTCOM GROUP and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YXTCOM GROUP and Oneconnect Financial
The main advantage of trading using opposite YXTCOM GROUP and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YXTCOM GROUP position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.| YXTCOM GROUP vs. Bill Com Holdings | YXTCOM GROUP vs. Rackspace Technology | YXTCOM GROUP vs. NetSol Technologies | YXTCOM GROUP vs. RadNet Inc |
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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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