Correlation Between Newage and YH Dimri

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Can any of the company-specific risk be diversified away by investing in both Newage and YH Dimri 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 Newage and YH Dimri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newage Inc and YH Dimri Construction, you can compare the effects of market volatilities on Newage and YH Dimri 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 Newage with a short position of YH Dimri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newage and YH Dimri.

Diversification Opportunities for Newage and YH Dimri

-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Newage and DIMRI is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Newage Inc and YH Dimri Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YH Dimri Construction and Newage 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 Newage Inc are associated (or correlated) with YH Dimri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YH Dimri Construction has no effect on the direction of Newage i.e., Newage and YH Dimri go up and down completely randomly.

Pair Corralation between Newage and YH Dimri

If you would invest  2,780,000  in YH Dimri Construction on December 29, 2023 and sell it today you would earn a total of  192,000  from holding YH Dimri Construction or generate 6.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy5.88%
ValuesDaily Returns

Newage Inc  vs.  YH Dimri Construction

 Performance 
       Timeline  
Newage Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Newage Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Newage is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
YH Dimri Construction 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in YH Dimri Construction are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, YH Dimri may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Newage and YH Dimri Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Newage and YH Dimri

The main advantage of trading using opposite Newage and YH Dimri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newage position performs unexpectedly, YH Dimri 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 YH Dimri will offset losses from the drop in YH Dimri's long position.
The idea behind Newage Inc and YH Dimri Construction 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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