Correlation Between Dun Bradstreet and YXTCOM GROUP

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

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

Diversification Opportunities for Dun Bradstreet and YXTCOM GROUP

-0.31

Correlation Coefficient

Dun Bradstreet  YXTCOM GROUP

Very good diversification

The 3 months correlation between Dun and YXTCOM is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dun Bradstreet Holdings 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 Dun Bradstreet 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 Dun Bradstreet Holdings 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 Dun Bradstreet i.e., Dun Bradstreet and YXTCOM GROUP go up and down completely randomly.

Pair Corralation between Dun Bradstreet and YXTCOM GROUP

Considering the 90-day investment horizon Dun Bradstreet Holdings is expected to generate 0.23 times more return on investment than YXTCOM GROUP. However, Dun Bradstreet Holdings is 4.38 times less risky than YXTCOM GROUP. It trades about 0.01 of its potential returns per unit of risk. YXTCOM GROUP HOLDING is currently generating about -0.12 per unit of risk. If you would invest  1,207  in Dun Bradstreet Holdings on September 26, 2024 and sell it today you would earn a total of  8.00  from holding Dun Bradstreet Holdings or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	18.35%
Values	Daily Returns

Dun Bradstreet Holdings  vs.  YXTCOM GROUP HOLDING

Dun Bradstreet Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dun Bradstreet Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Dun Bradstreet may actually be approaching a critical reversion point that can send shares even higher in January 2025.

YXTCOM GROUP HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YXTCOM GROUP HOLDING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Dun Bradstreet and YXTCOM GROUP

The main advantage of trading using opposite Dun Bradstreet and YXTCOM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dun Bradstreet 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 Dun Bradstreet Holdings 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.