Correlation Between YY and TechTarget
Can any of the company-specific risk be diversified away by investing in both YY and TechTarget 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 TechTarget 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 TechTarget, you can compare the effects of market volatilities on YY and TechTarget 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 TechTarget. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and TechTarget.
Diversification Opportunities for YY and TechTarget
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YY and TechTarget is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and TechTarget in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget 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 TechTarget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget has no effect on the direction of YY i.e., YY and TechTarget go up and down completely randomly.
Pair Corralation between YY and TechTarget
Allowing for the 90-day total investment horizon YY is expected to generate 4.47 times less return on investment than TechTarget. But when comparing it to its historical volatility, YY Inc Class is 1.46 times less risky than TechTarget. It trades about 0.06 of its potential returns per unit of risk. TechTarget is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,975 in TechTarget on August 28, 2024 and sell it today you would earn a total of 344.00 from holding TechTarget or generate 11.56% 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. TechTarget
Performance |
| Timeline |
| YY Inc Class |
| TechTarget |
YY and TechTarget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YY and TechTarget
The main advantage of trading using opposite YY and TechTarget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, TechTarget 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 TechTarget will offset losses from the drop in TechTarget's long position.| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
| TechTarget vs. Sabio Holdings | TechTarget vs. Comscore | TechTarget vs. Outbrain | TechTarget vs. Rightmove Plc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |