Correlation Between YOOMA WELLNESS and UMWELTBANK

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

By analyzing existing cross correlation between YOOMA WELLNESS INC and UMWELTBANK, you can compare the effects of market volatilities on YOOMA WELLNESS and UMWELTBANK 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 YOOMA WELLNESS with a short position of UMWELTBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of YOOMA WELLNESS and UMWELTBANK.

Diversification Opportunities for YOOMA WELLNESS and UMWELTBANK

0.0

Correlation Coefficient

YOOMA WELLNESS  UMWELTBANK

Pay attention - limited upside

The 3 months correlation between YOOMA and UMWELTBANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YOOMA WELLNESS INC and UMWELTBANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMWELTBANK and YOOMA WELLNESS 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 YOOMA WELLNESS INC are associated (or correlated) with UMWELTBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMWELTBANK has no effect on the direction of YOOMA WELLNESS i.e., YOOMA WELLNESS and UMWELTBANK go up and down completely randomly.

Pair Corralation between YOOMA WELLNESS and UMWELTBANK

If you would invest  508.00  in UMWELTBANK on October 10, 2024 and sell it today you would earn a total of  112.00  from holding UMWELTBANK or generate 22.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

YOOMA WELLNESS INC  vs.  UMWELTBANK

YOOMA WELLNESS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YOOMA WELLNESS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, YOOMA WELLNESS is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

UMWELTBANK

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UMWELTBANK are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile forward-looking signals, UMWELTBANK exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YOOMA WELLNESS and UMWELTBANK

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

The idea behind YOOMA WELLNESS INC and UMWELTBANK 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.