Correlation Between YY and Onfolio Holdings
Can any of the company-specific risk be diversified away by investing in both YY and Onfolio Holdings 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 Onfolio Holdings 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 Onfolio Holdings, you can compare the effects of market volatilities on YY and Onfolio Holdings 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 Onfolio Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and Onfolio Holdings.
Diversification Opportunities for YY and Onfolio Holdings
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between YY and Onfolio is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and Onfolio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onfolio Holdings 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 Onfolio Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onfolio Holdings has no effect on the direction of YY i.e., YY and Onfolio Holdings go up and down completely randomly.
Pair Corralation between YY and Onfolio Holdings
Allowing for the 90-day total investment horizon YY is expected to generate 1.65 times less return on investment than Onfolio Holdings. But when comparing it to its historical volatility, YY Inc Class is 1.67 times less risky than Onfolio Holdings. It trades about 0.14 of its potential returns per unit of risk. Onfolio Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Onfolio Holdings on November 29, 2024 and sell it today you would earn a total of 15.00 from holding Onfolio Holdings or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YY Inc Class vs. Onfolio Holdings
Performance |
| Timeline |
| YY Inc Class |
| Onfolio Holdings |
YY and Onfolio Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and Onfolio Holdings
The main advantage of trading using opposite YY and Onfolio Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, Onfolio Holdings 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 Onfolio Holdings will offset losses from the drop in Onfolio Holdings' long position.| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
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.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |