Correlation Between YY and Trump Media
Can any of the company-specific risk be diversified away by investing in both YY and Trump Media 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 YY and Trump Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YY Inc Class and Trump Media Technology, you can compare the effects of market volatilities on YY and Trump Media 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 YY with a short position of Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and Trump Media.
Diversification Opportunities for YY and Trump Media
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YY and Trump is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology and YY 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 YY Inc Class are associated (or correlated) with Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of YY i.e., YY and Trump Media go up and down completely randomly.
Pair Corralation between YY and Trump Media
Allowing for the 90-day total investment horizon YY Inc Class is expected to generate 0.15 times more return on investment than Trump Media. However, YY Inc Class is 6.83 times less risky than Trump Media. It trades about 0.19 of its potential returns per unit of risk. Trump Media Technology is currently generating about 0.0 per unit of risk. If you would invest 3,365 in YY Inc Class on August 24, 2024 and sell it today you would earn a total of 238.00 from holding YY Inc Class or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YY Inc Class vs. Trump Media Technology
Performance |
| Timeline |
| YY Inc Class |
| Trump Media Technology |
YY and Trump Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and Trump Media
The main advantage of trading using opposite YY and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media's long position.| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
| Trump Media vs. Lincoln Electric Holdings | Trump Media vs. ASE Industrial Holding | Trump Media vs. Spectrum Brands Holdings | Trump Media vs. Timken Company |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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