Correlation Between EUDA Health and So Young

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

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

Diversification Opportunities for EUDA Health and So Young

-0.57

Correlation Coefficient

EUDA Health  So Young

Excellent diversification

The 3 months correlation between EUDA and So Young is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of EUDA Health i.e., EUDA Health and So Young go up and down completely randomly.

Pair Corralation between EUDA Health and So Young

Given the investment horizon of 90 days EUDA Health Holdings is expected to under-perform the So Young. In addition to that, EUDA Health is 1.71 times more volatile than So Young International. It trades about -0.01 of its total potential returns per unit of risk. So Young International is currently generating about 0.09 per unit of volatility. If you would invest  83.00  in So Young International on November 29, 2024 and sell it today you would earn a total of  15.00  from holding So Young International or generate 18.07% return on investment over 90 days.

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

EUDA Health Holdings  vs.  So Young International

EUDA Health Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days EUDA Health Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, EUDA Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

So Young International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in So Young International are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, So Young showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EUDA Health and So Young

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

The idea behind EUDA Health Holdings and So Young International 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.