Correlation Between CoreCivic and YXTCOM GROUP

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

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

Diversification Opportunities for CoreCivic and YXTCOM GROUP

-0.29

Correlation Coefficient

CoreCivic  YXTCOM GROUP

Very good diversification

The 3 months correlation between CoreCivic and YXTCOM is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CoreCivic and YXTCOM GROUP HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YXTCOM GROUP HOLDING and CoreCivic 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 CoreCivic are associated (or correlated) with YXTCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YXTCOM GROUP HOLDING has no effect on the direction of CoreCivic i.e., CoreCivic and YXTCOM GROUP go up and down completely randomly.

Pair Corralation between CoreCivic and YXTCOM GROUP

Considering the 90-day investment horizon CoreCivic is expected to generate 10.68 times less return on investment than YXTCOM GROUP. But when comparing it to its historical volatility, CoreCivic is 3.3 times less risky than YXTCOM GROUP. It trades about 0.03 of its potential returns per unit of risk. YXTCOM GROUP HOLDING is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  213.00  in YXTCOM GROUP HOLDING on October 14, 2024 and sell it today you would earn a total of  22.00  from holding YXTCOM GROUP HOLDING or generate 10.33% return on investment over 90 days.

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

CoreCivic  vs.  YXTCOM GROUP HOLDING

CoreCivic

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CoreCivic are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, CoreCivic showed solid returns over the last few months and may actually be approaching a breakup point.

YXTCOM GROUP HOLDING

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in YXTCOM GROUP HOLDING are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, YXTCOM GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with CoreCivic and YXTCOM GROUP

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

The idea behind CoreCivic and YXTCOM GROUP HOLDING 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.