Correlation Between TCL Corp and Youngy Health

Can any of the company-specific risk be diversified away by investing in both TCL Corp and Youngy Health 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 TCL Corp and Youngy Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TCL Corp and Youngy Health Co, you can compare the effects of market volatilities on TCL Corp and Youngy Health 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 TCL Corp with a short position of Youngy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of TCL Corp and Youngy Health.

Diversification Opportunities for TCL Corp and Youngy Health

-0.6

Correlation Coefficient

TCL Corp  Youngy Health

Excellent diversification

The 3 months correlation between TCL and Youngy is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding TCL Corp and Youngy Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngy Health and TCL Corp 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 TCL Corp are associated (or correlated) with Youngy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngy Health has no effect on the direction of TCL Corp i.e., TCL Corp and Youngy Health go up and down completely randomly.

Pair Corralation between TCL Corp and Youngy Health

Assuming the 90 days trading horizon TCL Corp is expected to under-perform the Youngy Health. But the stock apears to be less risky and, when comparing its historical volatility, TCL Corp is 1.43 times less risky than Youngy Health. The stock trades about -0.12 of its potential returns per unit of risk. The Youngy Health Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  379.00  in Youngy Health Co on December 22, 2024 and sell it today you would earn a total of  9.00  from holding Youngy Health Co or generate 2.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

TCL Corp  vs.  Youngy Health Co

TCL Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days TCL Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Youngy Health

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Youngy Health Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Youngy Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TCL Corp and Youngy Health

The main advantage of trading using opposite TCL Corp and Youngy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCL Corp position performs unexpectedly, Youngy Health 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 Youngy Health will offset losses from the drop in Youngy Health's long position.

The idea behind TCL Corp and Youngy Health Co 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.