Correlation Between Yubo International and Innovative Eyewear

Can any of the company-specific risk be diversified away by investing in both Yubo International and Innovative Eyewear 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 Innovative Eyewear 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 Innovative Eyewear, you can compare the effects of market volatilities on Yubo International and Innovative Eyewear 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 Innovative Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yubo International and Innovative Eyewear.

Diversification Opportunities for Yubo International and Innovative Eyewear

-0.45

Correlation Coefficient

Yubo International  Innovative Eyewear

Very good diversification

The 3 months correlation between Yubo and Innovative is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yubo International Biotech and Innovative Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Eyewear 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 Innovative Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Eyewear has no effect on the direction of Yubo International i.e., Yubo International and Innovative Eyewear go up and down completely randomly.

Pair Corralation between Yubo International and Innovative Eyewear

Given the investment horizon of 90 days Yubo International Biotech is expected to generate 0.67 times more return on investment than Innovative Eyewear. However, Yubo International Biotech is 1.5 times less risky than Innovative Eyewear. It trades about 0.35 of its potential returns per unit of risk. Innovative Eyewear is currently generating about -0.22 per unit of risk. If you would invest  5.09  in Yubo International Biotech on December 11, 2024 and sell it today you would earn a total of  1.71  from holding Yubo International Biotech or generate 33.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Yubo International Biotech  vs.  Innovative Eyewear

Yubo International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yubo International Biotech are ranked lower than 7 (%) 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.

Innovative Eyewear

Risk-Adjusted Performance

Very Weak

Over the last 90 days Innovative Eyewear 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 fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Yubo International and Innovative Eyewear

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

The idea behind Yubo International Biotech and Innovative Eyewear 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.