Correlation Between YY and Perion Network
Can any of the company-specific risk be diversified away by investing in both YY and Perion Network 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 Perion Network 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 Perion Network, you can compare the effects of market volatilities on YY and Perion Network 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 Perion Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and Perion Network.
Diversification Opportunities for YY and Perion Network
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YY and Perion is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network 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 Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of YY i.e., YY and Perion Network go up and down completely randomly.
Pair Corralation between YY and Perion Network
Allowing for the 90-day total investment horizon YY Inc Class is expected to under-perform the Perion Network. But the stock apears to be less risky and, when comparing its historical volatility, YY Inc Class is 1.03 times less risky than Perion Network. The stock trades about 0.0 of its potential returns per unit of risk. The Perion Network is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 802.00 in Perion Network on August 26, 2024 and sell it today you would earn a total of 50.00 from holding Perion Network or generate 6.23% 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. Perion Network
Performance |
| Timeline |
| YY Inc Class |
| Perion Network |
YY and Perion Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and Perion Network
The main advantage of trading using opposite YY and Perion Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, Perion Network 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 Perion Network will offset losses from the drop in Perion Network's long position.The idea behind YY Inc Class and Perion Network pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |