Correlation Between Y Optics and Aniplus

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

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

Diversification Opportunities for Y Optics and Aniplus

0.69

Correlation Coefficient

Y Optics  Aniplus

Poor diversification

The 3 months correlation between 066430 and Aniplus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Y Optics Manufacture Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and Y Optics 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 Y Optics Manufacture Co are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of Y Optics i.e., Y Optics and Aniplus go up and down completely randomly.

Pair Corralation between Y Optics and Aniplus

Assuming the 90 days trading horizon Y Optics Manufacture Co is expected to generate 0.67 times more return on investment than Aniplus. However, Y Optics Manufacture Co is 1.5 times less risky than Aniplus. It trades about -0.07 of its potential returns per unit of risk. Aniplus is currently generating about -0.05 per unit of risk. If you would invest  56,800  in Y Optics Manufacture Co on October 10, 2024 and sell it today you would lose (4,600) from holding Y Optics Manufacture Co or give up 8.1% of portfolio value over 90 days.

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

Y Optics Manufacture Co  vs.  Aniplus

Y Optics Manufacture

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Y Optics Manufacture Co 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.

Aniplus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aniplus 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.

Pair Trading with Y Optics and Aniplus

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

The idea behind Y Optics Manufacture Co and Aniplus 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.