Correlation Between YY and High Roller
Can any of the company-specific risk be diversified away by investing in both YY and High Roller 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 High Roller 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 High Roller Technologies,, you can compare the effects of market volatilities on YY and High Roller 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 High Roller. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and High Roller.
Diversification Opportunities for YY and High Roller
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YY and High is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and High Roller Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Roller Technologies, 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 High Roller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Roller Technologies, has no effect on the direction of YY i.e., YY and High Roller go up and down completely randomly.
Pair Corralation between YY and High Roller
Allowing for the 90-day total investment horizon YY is expected to generate 53.09 times less return on investment than High Roller. But when comparing it to its historical volatility, YY Inc Class is 44.99 times less risky than High Roller. It trades about 0.1 of its potential returns per unit of risk. High Roller Technologies, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.00 in High Roller Technologies, on November 3, 2024 and sell it today you would earn a total of 468.00 from holding High Roller Technologies, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.0% |
| Values | Daily Returns |
YY Inc Class vs. High Roller Technologies,
Performance |
| Timeline |
| YY Inc Class |
| High Roller Technologies, |
YY and High Roller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and High Roller
The main advantage of trading using opposite YY and High Roller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, High Roller 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 High Roller will offset losses from the drop in High Roller's long position.| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
| High Roller vs. BBB Foods | High Roller vs. Mamas Creations | High Roller vs. Arrow Electronics | High Roller vs. Genuine Parts Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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