Correlation Between Sellas Life and YXTCOM GROUP

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Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and YXTCOM GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and YXTCOM GROUP HOLDING, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of YXTCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and YXTCOM GROUP.

Diversification Opportunities for Sellas Life and YXTCOM GROUP

0.2
  Correlation Coefficient

Modest diversification

The 3 months correlation between Sellas and YXTCOM is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences 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 Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and YXTCOM GROUP go up and down completely randomly.

Pair Corralation between Sellas Life and YXTCOM GROUP

Considering the 90-day investment horizon Sellas Life Sciences is expected to under-perform the YXTCOM GROUP. But the stock apears to be less risky and, when comparing its historical volatility, Sellas Life Sciences is 1.38 times less risky than YXTCOM GROUP. The stock trades about -0.14 of its potential returns per unit of risk. The YXTCOM GROUP HOLDING is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  274.00  in YXTCOM GROUP HOLDING on September 27, 2024 and sell it today you would lose (21.00) from holding YXTCOM GROUP HOLDING or give up 7.66% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Sellas Life Sciences  vs.  YXTCOM GROUP HOLDING

 Performance 
       Timeline  
Sellas Life Sciences 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sellas Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential 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.
YXTCOM GROUP HOLDING 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Sellas Life and YXTCOM GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sellas Life and YXTCOM GROUP

The main advantage of trading using opposite Sellas Life and YXTCOM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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 Sellas Life Sciences 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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