Correlation Between WB Burgers and Yubo International

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

By analyzing existing cross correlation between WB Burgers Asia and Yubo International Biotech, you can compare the effects of market volatilities on WB Burgers and Yubo 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 WB Burgers with a short position of Yubo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WB Burgers and Yubo International.

Diversification Opportunities for WB Burgers and Yubo International

0.47

Correlation Coefficient

WB Burgers  Yubo International

Very weak diversification

The 3 months correlation between WBBA and Yubo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding WB Burgers Asia and Yubo International Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yubo International and WB Burgers 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 WB Burgers Asia are associated (or correlated) with Yubo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yubo International has no effect on the direction of WB Burgers i.e., WB Burgers and Yubo International go up and down completely randomly.

Pair Corralation between WB Burgers and Yubo International

If you would invest  40.00  in WB Burgers Asia on October 8, 2024 and sell it today you would earn a total of  0.00  from holding WB Burgers Asia or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

WB Burgers Asia  vs.  Yubo International Biotech

WB Burgers Asia

Risk-Adjusted Performance

0 of 100

Very Weak

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

Yubo International

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yubo International Biotech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Yubo International revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WB Burgers and Yubo International

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

The idea behind WB Burgers Asia and Yubo International Biotech 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.