Correlation Between Yunhong CTI and Amerityre Corp
Can any of the company-specific risk be diversified away by investing in both Yunhong CTI and Amerityre Corp 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 CTI and Amerityre Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunhong CTI and Amerityre Corp, you can compare the effects of market volatilities on Yunhong CTI and Amerityre Corp 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 CTI with a short position of Amerityre Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunhong CTI and Amerityre Corp.
Diversification Opportunities for Yunhong CTI and Amerityre Corp
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yunhong and Amerityre is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Yunhong CTI and Amerityre Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amerityre Corp and Yunhong CTI 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 CTI are associated (or correlated) with Amerityre Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amerityre Corp has no effect on the direction of Yunhong CTI i.e., Yunhong CTI and Amerityre Corp go up and down completely randomly.
Pair Corralation between Yunhong CTI and Amerityre Corp
If you would invest 121.00 in Yunhong CTI on January 20, 2024 and sell it today you would earn a total of 122.00 from holding Yunhong CTI or generate 100.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.63% |
| Values | Daily Returns |
Yunhong CTI vs. Amerityre Corp
Performance |
| Timeline |
| Yunhong CTI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amerityre Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yunhong CTI and Amerityre Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunhong CTI and Amerityre Corp
The main advantage of trading using opposite Yunhong CTI and Amerityre Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunhong CTI position performs unexpectedly, Amerityre Corp 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 Amerityre Corp will offset losses from the drop in Amerityre Corp's long position.| Yunhong CTI vs. Card Factory plc | Yunhong CTI vs. School Specialty | Yunhong CTI vs. Ceconomy AG ADR | Yunhong CTI vs. Bowlin Travel Centers |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets |