Correlation Between Cytogen and Guyoung Technology
Can any of the company-specific risk be diversified away by investing in both Cytogen and Guyoung 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 Cytogen and Guyoung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and Guyoung Technology Co, you can compare the effects of market volatilities on Cytogen and Guyoung 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 Cytogen with a short position of Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and Guyoung Technology.
Diversification Opportunities for Cytogen and Guyoung Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cytogen and Guyoung is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung Technology and Cytogen 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 Cytogen are associated (or correlated) with Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of Cytogen i.e., Cytogen and Guyoung Technology go up and down completely randomly.
Pair Corralation between Cytogen and Guyoung Technology
Assuming the 90 days trading horizon Cytogen is expected to under-perform the Guyoung Technology. In addition to that, Cytogen is 2.06 times more volatile than Guyoung Technology Co. It trades about -0.05 of its total potential returns per unit of risk. Guyoung Technology Co is currently generating about -0.08 per unit of volatility. If you would invest 272,000 in Guyoung Technology Co on September 25, 2024 and sell it today you would lose (67,500) from holding Guyoung Technology Co or give up 24.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.18% |
Values | Daily Returns |
Cytogen vs. Guyoung Technology Co
Performance |
Timeline |
Cytogen |
Guyoung Technology |
Cytogen and Guyoung Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cytogen and Guyoung Technology
The main advantage of trading using opposite Cytogen and Guyoung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen position performs unexpectedly, Guyoung 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 Guyoung Technology will offset losses from the drop in Guyoung Technology's long position.Cytogen vs. KNOTUS CoLtd | Cytogen vs. Bridge Biotherapeutics | Cytogen vs. AptaBio Therapeutics | Cytogen vs. Genolution |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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