Correlation Between CITIC Securities and Youngy Health

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

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

Diversification Opportunities for CITIC Securities and Youngy Health

0.89

Correlation Coefficient

CITIC Securities  Youngy Health

Very poor diversification

The 3 months correlation between CITIC and Youngy is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities Co and Youngy Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngy Health and CITIC Securities 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 CITIC Securities Co are associated (or correlated) with Youngy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngy Health has no effect on the direction of CITIC Securities i.e., CITIC Securities and Youngy Health go up and down completely randomly.

Pair Corralation between CITIC Securities and Youngy Health

Assuming the 90 days trading horizon CITIC Securities is expected to generate 1.34 times less return on investment than Youngy Health. But when comparing it to its historical volatility, CITIC Securities Co is 1.33 times less risky than Youngy Health. It trades about 0.24 of its potential returns per unit of risk. Youngy Health Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  243.00  in Youngy Health Co on September 14, 2024 and sell it today you would earn a total of  208.00  from holding Youngy Health Co or generate 85.6% return on investment over 90 days.

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

CITIC Securities Co  vs.  Youngy Health Co

CITIC Securities

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Securities Co are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CITIC Securities sustained solid returns over the last few months and may actually be approaching a breakup point.

Youngy Health

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Youngy Health Co are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Youngy Health sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIC Securities and Youngy Health

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

The idea behind CITIC Securities Co and Youngy Health Co 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.