Correlation Between YY and Tinybeans Group
Can any of the company-specific risk be diversified away by investing in both YY and Tinybeans Group 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 Tinybeans Group 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 Tinybeans Group Limited, you can compare the effects of market volatilities on YY and Tinybeans Group 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 Tinybeans Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and Tinybeans Group.
Diversification Opportunities for YY and Tinybeans Group
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YY and Tinybeans is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and Tinybeans Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinybeans Group 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 Tinybeans Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinybeans Group has no effect on the direction of YY i.e., YY and Tinybeans Group go up and down completely randomly.
Pair Corralation between YY and Tinybeans Group
Allowing for the 90-day total investment horizon YY Inc Class is expected to generate 0.36 times more return on investment than Tinybeans Group. However, YY Inc Class is 2.75 times less risky than Tinybeans Group. It trades about 0.18 of its potential returns per unit of risk. Tinybeans Group Limited is currently generating about -0.22 per unit of risk. If you would invest 4,294 in YY Inc Class on November 18, 2024 and sell it today you would earn a total of 421.00 from holding YY Inc Class or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YY Inc Class vs. Tinybeans Group Limited
Performance |
| Timeline |
| YY Inc Class |
| Tinybeans Group |
YY and Tinybeans Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and Tinybeans Group
The main advantage of trading using opposite YY and Tinybeans Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, Tinybeans Group 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 Tinybeans Group will offset losses from the drop in Tinybeans Group's long position.| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
| Tinybeans Group vs. Hillman Solutions Corp | Tinybeans Group vs. Ryanair Holdings PLC | Tinybeans Group vs. flyExclusive, | Tinybeans Group vs. American Airlines 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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