Correlation Between Yubo International and GIB Capital

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

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

Diversification Opportunities for Yubo International and GIB Capital

0.0

Correlation Coefficient

Yubo International  GIB Capital

Pay attention - limited upside

The 3 months correlation between Yubo and GIB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yubo International Biotech and GIB Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIB Capital Group and Yubo International 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 Yubo International Biotech are associated (or correlated) with GIB Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIB Capital Group has no effect on the direction of Yubo International i.e., Yubo International and GIB Capital go up and down completely randomly.

Pair Corralation between Yubo International and GIB Capital

Given the investment horizon of 90 days Yubo International is expected to generate 2.41 times less return on investment than GIB Capital. But when comparing it to its historical volatility, Yubo International Biotech is 3.06 times less risky than GIB Capital. It trades about 0.08 of its potential returns per unit of risk. GIB Capital Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  101.00  in GIB Capital Group on October 23, 2024 and sell it today you would lose (100.80) from holding GIB Capital Group or give up 99.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Yubo International Biotech  vs.  GIB Capital Group

Yubo International

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yubo International Biotech are ranked lower than 2 (%) 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.

GIB Capital Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GIB Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, GIB Capital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Yubo International and GIB Capital

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

The idea behind Yubo International Biotech and GIB Capital 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.