Correlation Between Koios Beverage and YanGuFang International

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

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

Diversification Opportunities for Koios Beverage and YanGuFang International

0.56

Correlation Coefficient

Koios Beverage  YanGuFang International

Very weak diversification

The 3 months correlation between Koios and YanGuFang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Koios Beverage Corp and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International and Koios Beverage 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 Koios Beverage Corp are associated (or correlated) with YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Koios Beverage i.e., Koios Beverage and YanGuFang International go up and down completely randomly.

Pair Corralation between Koios Beverage and YanGuFang International

If you would invest  0.18  in YanGuFang International Group on September 3, 2024 and sell it today you would earn a total of  0.00  from holding YanGuFang International Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.54%
Values	Daily Returns

Koios Beverage Corp  vs.  YanGuFang International Group

Koios Beverage Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Koios Beverage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

YanGuFang International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YanGuFang International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, YanGuFang International is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Koios Beverage and YanGuFang International

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

The idea behind Koios Beverage Corp and YanGuFang International Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.