Correlation Between Yatsen Holding and Helen Of

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

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

Diversification Opportunities for Yatsen Holding and Helen Of

0.79

Correlation Coefficient

Yatsen Holding  Helen Of

Poor diversification

The 3 months correlation between Yatsen and Helen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Yatsen Holding and Helen of Troy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helen of Troy and Yatsen Holding 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 Yatsen Holding are associated (or correlated) with Helen Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helen of Troy has no effect on the direction of Yatsen Holding i.e., Yatsen Holding and Helen Of go up and down completely randomly.

Pair Corralation between Yatsen Holding and Helen Of

Considering the 90-day investment horizon Yatsen Holding is expected to generate 1.06 times more return on investment than Helen Of. However, Yatsen Holding is 1.06 times more volatile than Helen of Troy. It trades about 0.21 of its potential returns per unit of risk. Helen of Troy is currently generating about 0.07 per unit of risk. If you would invest  324.00  in Yatsen Holding on September 17, 2024 and sell it today you would earn a total of  155.50  from holding Yatsen Holding or generate 47.99% return on investment over 90 days.

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

Yatsen Holding  vs.  Helen of Troy

Yatsen Holding

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Yatsen Holding are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Yatsen Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Helen of Troy

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Helen of Troy are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Helen Of exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yatsen Holding and Helen Of

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

The idea behind Yatsen Holding and Helen of Troy 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.