Correlation Between Amer Sports, and Yunhong Green

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

By analyzing existing cross correlation between Amer Sports, and Yunhong Green CTI, you can compare the effects of market volatilities on Amer Sports, and Yunhong Green 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 Amer Sports, with a short position of Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Sports, and Yunhong Green.

Diversification Opportunities for Amer Sports, and Yunhong Green

-0.14

Correlation Coefficient

Amer Sports,  Yunhong Green

Good diversification

The 3 months correlation between Amer and Yunhong is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Amer Sports, and Yunhong Green CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunhong Green CTI and Amer Sports, 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 Amer Sports, are associated (or correlated) with Yunhong Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunhong Green CTI has no effect on the direction of Amer Sports, i.e., Amer Sports, and Yunhong Green go up and down completely randomly.

Pair Corralation between Amer Sports, and Yunhong Green

Allowing for the 90-day total investment horizon Amer Sports, is expected to generate 15.01 times less return on investment than Yunhong Green. But when comparing it to its historical volatility, Amer Sports, is 2.9 times less risky than Yunhong Green. It trades about 0.03 of its potential returns per unit of risk. Yunhong Green CTI is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  60.00  in Yunhong Green CTI on December 19, 2024 and sell it today you would earn a total of  48.00  from holding Yunhong Green CTI or generate 80.0% return on investment over 90 days.

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

Amer Sports,  vs.  Yunhong Green CTI

Amer Sports,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Amer Sports, is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Yunhong Green CTI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yunhong Green CTI are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Yunhong Green revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amer Sports, and Yunhong Green

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

The idea behind Amer Sports, and Yunhong Green CTI 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.