Correlation Between Wholetech System and Yageo Corp

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

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

Diversification Opportunities for Wholetech System and Yageo Corp

0.12

Correlation Coefficient

Wholetech System  Yageo Corp

Average diversification

The 3 months correlation between Wholetech and Yageo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Wholetech System Hitech and Yageo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yageo Corp and Wholetech System 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 Wholetech System Hitech are associated (or correlated) with Yageo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yageo Corp has no effect on the direction of Wholetech System i.e., Wholetech System and Yageo Corp go up and down completely randomly.

Pair Corralation between Wholetech System and Yageo Corp

Assuming the 90 days trading horizon Wholetech System is expected to generate 6.45 times less return on investment than Yageo Corp. In addition to that, Wholetech System is 1.02 times more volatile than Yageo Corp. It trades about 0.01 of its total potential returns per unit of risk. Yageo Corp is currently generating about 0.09 per unit of volatility. If you would invest  52,000  in Yageo Corp on December 2, 2024 and sell it today you would earn a total of  4,600  from holding Yageo Corp or generate 8.85% return on investment over 90 days.

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

Wholetech System Hitech  vs.  Yageo Corp

Wholetech System Hitech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wholetech System Hitech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Wholetech System is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Yageo Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yageo Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Yageo Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Wholetech System and Yageo Corp

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

The idea behind Wholetech System Hitech and Yageo Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.