Correlation Between Yunhong Green and ZOOZ Power

Can any of the company-specific risk be diversified away by investing in both Yunhong Green and ZOOZ Power 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 Yunhong Green and ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yunhong Green CTI and ZOOZ Power Ltd, you can compare the effects of market volatilities on Yunhong Green and ZOOZ Power 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 Yunhong Green with a short position of ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunhong Green and ZOOZ Power.

Diversification Opportunities for Yunhong Green and ZOOZ Power

-0.48

Correlation Coefficient

Yunhong Green  ZOOZ Power

Very good diversification

The 3 months correlation between Yunhong and ZOOZ is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Yunhong Green CTI and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power and Yunhong Green 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 Yunhong Green CTI are associated (or correlated) with ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Yunhong Green i.e., Yunhong Green and ZOOZ Power go up and down completely randomly.

Pair Corralation between Yunhong Green and ZOOZ Power

Given the investment horizon of 90 days Yunhong Green CTI is expected to generate 1.51 times more return on investment than ZOOZ Power. However, Yunhong Green is 1.51 times more volatile than ZOOZ Power Ltd. It trades about 0.22 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about -0.14 per unit of risk. If you would invest  47.00  in Yunhong Green CTI on December 20, 2024 and sell it today you would earn a total of  61.00  from holding Yunhong Green CTI or generate 129.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Yunhong Green CTI  vs.  ZOOZ Power Ltd

Yunhong Green CTI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yunhong Green CTI are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Yunhong Green revealed solid returns over the last few months and may actually be approaching a breakup point.

ZOOZ Power

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZOOZ Power Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic 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 Yunhong Green and ZOOZ Power

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

The idea behind Yunhong Green CTI and ZOOZ Power Ltd 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.