Correlation Between Cardano and Young Poong

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

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

Diversification Opportunities for Cardano and Young Poong

0.61

Correlation Coefficient

Cardano  Young Poong

Poor diversification

The 3 months correlation between Cardano and Young is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp and Cardano 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 Cardano are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Corp has no effect on the direction of Cardano i.e., Cardano and Young Poong go up and down completely randomly.

Pair Corralation between Cardano and Young Poong

Assuming the 90 days trading horizon Cardano is expected to under-perform the Young Poong. In addition to that, Cardano is 3.64 times more volatile than Young Poong Corp. It trades about -0.02 of its total potential returns per unit of risk. Young Poong Corp is currently generating about 0.0 per unit of volatility. If you would invest  39,141,300  in Young Poong Corp on October 10, 2024 and sell it today you would lose (141,300) from holding Young Poong Corp or give up 0.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	90.91%
Values	Daily Returns

Cardano  vs.  Young Poong Corp

Cardano

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cardano are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Cardano exhibited solid returns over the last few months and may actually be approaching a breakup point.

Young Poong Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Young Poong Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Young Poong may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Cardano and Young Poong

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

The idea behind Cardano and Young Poong 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.