Correlation Between Yura Tech and Puloon Technology

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

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

Diversification Opportunities for Yura Tech and Puloon Technology

0.62

Correlation Coefficient

Yura Tech  Puloon Technology

Poor diversification

The 3 months correlation between Yura and Puloon is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and Yura Tech 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 Yura Tech Co are associated (or correlated) with Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Yura Tech i.e., Yura Tech and Puloon Technology go up and down completely randomly.

Pair Corralation between Yura Tech and Puloon Technology

Assuming the 90 days trading horizon Yura Tech Co is expected to generate 0.62 times more return on investment than Puloon Technology. However, Yura Tech Co is 1.62 times less risky than Puloon Technology. It trades about 0.39 of its potential returns per unit of risk. Puloon Technology is currently generating about 0.15 per unit of risk. If you would invest  632,000  in Yura Tech Co on September 20, 2024 and sell it today you would earn a total of  220,000  from holding Yura Tech Co or generate 34.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Yura Tech Co  vs.  Puloon Technology

Yura Tech

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yura Tech Co are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Yura Tech sustained solid returns over the last few months and may actually be approaching a breakup point.

Puloon Technology

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Puloon Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Puloon Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Yura Tech and Puloon Technology

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

The idea behind Yura Tech Co and Puloon Technology 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.