Correlation Between Yunji and Genesco

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

By analyzing existing cross correlation between Yunji Inc and Genesco, you can compare the effects of market volatilities on Yunji and Genesco 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 Yunji with a short position of Genesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunji and Genesco.

Diversification Opportunities for Yunji and Genesco

-0.62

Correlation Coefficient

Yunji  Genesco

Excellent diversification

The 3 months correlation between Yunji and Genesco is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Yunji Inc and Genesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesco and Yunji 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 Yunji Inc are associated (or correlated) with Genesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesco has no effect on the direction of Yunji i.e., Yunji and Genesco go up and down completely randomly.

Pair Corralation between Yunji and Genesco

Allowing for the 90-day total investment horizon Yunji Inc is expected to generate 1.06 times more return on investment than Genesco. However, Yunji is 1.06 times more volatile than Genesco. It trades about 0.06 of its potential returns per unit of risk. Genesco is currently generating about -0.24 per unit of risk. If you would invest  159.00  in Yunji Inc on December 28, 2024 and sell it today you would earn a total of  19.00  from holding Yunji Inc or generate 11.95% return on investment over 90 days.

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

Yunji Inc  vs.  Genesco

Yunji Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Yunji Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Yunji revealed solid returns over the last few months and may actually be approaching a breakup point.

Genesco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genesco has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Yunji and Genesco

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

The idea behind Yunji Inc and Genesco 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.