Correlation Between Golden Grail and YY
Can any of the company-specific risk be diversified away by investing in both Golden Grail and YY 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 Golden Grail and YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Grail Technology and YY Inc Class, you can compare the effects of market volatilities on Golden Grail and YY 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 Golden Grail with a short position of YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Grail and YY.
Diversification Opportunities for Golden Grail and YY
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and YY is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Golden Grail Technology and YY Inc Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Inc Class and Golden Grail 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 Golden Grail Technology are associated (or correlated) with YY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Inc Class has no effect on the direction of Golden Grail i.e., Golden Grail and YY go up and down completely randomly.
Pair Corralation between Golden Grail and YY
Given the investment horizon of 90 days Golden Grail Technology is expected to generate 3.34 times more return on investment than YY. However, Golden Grail is 3.34 times more volatile than YY Inc Class. It trades about 0.01 of its potential returns per unit of risk. YY Inc Class is currently generating about 0.02 per unit of risk. If you would invest 2.92 in Golden Grail Technology on December 25, 2024 and sell it today you would lose (0.61) from holding Golden Grail Technology or give up 20.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Golden Grail Technology vs. YY Inc Class
Performance |
Timeline |
Golden Grail Technology |
YY Inc Class |
Golden Grail and YY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golden Grail and YY
The main advantage of trading using opposite Golden Grail and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Grail position performs unexpectedly, YY 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 YY will offset losses from the drop in YY's long position.Golden Grail vs. Tencent Holdings | Golden Grail vs. Autohome | Golden Grail vs. Arena Group Holdings | Golden Grail vs. Asset Entities Class |
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Check out your portfolio center.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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