Correlation Between Polaris Office and YeSUN Tech

Can any of the company-specific risk be diversified away by investing in both Polaris Office and YeSUN Tech 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 Polaris Office and YeSUN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Polaris Office Corp and YeSUN Tech CoLtd, you can compare the effects of market volatilities on Polaris Office and YeSUN Tech 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 Polaris Office with a short position of YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polaris Office and YeSUN Tech.

Diversification Opportunities for Polaris Office and YeSUN Tech

0.0

Correlation Coefficient

Polaris Office  YeSUN Tech

Pay attention - limited upside

The 3 months correlation between Polaris and YeSUN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polaris Office Corp and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech CoLtd and Polaris Office 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 Polaris Office Corp are associated (or correlated) with YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Polaris Office i.e., Polaris Office and YeSUN Tech go up and down completely randomly.

Pair Corralation between Polaris Office and YeSUN Tech

If you would invest  612,000  in Polaris Office Corp on December 5, 2024 and sell it today you would lose (15,000) from holding Polaris Office Corp or give up 2.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Polaris Office Corp  vs.  YeSUN Tech CoLtd

Polaris Office Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Polaris Office Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Polaris Office is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

YeSUN Tech CoLtd

Risk-Adjusted Performance

Weak

Over the last 90 days YeSUN Tech CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, YeSUN Tech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Polaris Office and YeSUN Tech

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

The idea behind Polaris Office Corp and YeSUN Tech CoLtd 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..