Correlation Between NYSE Composite and YS Biopharma

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and YS Biopharma 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 NYSE Composite and YS Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and YS Biopharma Co, you can compare the effects of market volatilities on NYSE Composite and YS Biopharma 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 NYSE Composite with a short position of YS Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and YS Biopharma.

Diversification Opportunities for NYSE Composite and YS Biopharma

  Correlation Coefficient

Very weak diversification

The 3 months correlation between NYSE and YS Biopharma is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and YS Biopharma Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YS Biopharma and NYSE Composite 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 NYSE Composite are associated (or correlated) with YS Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YS Biopharma has no effect on the direction of NYSE Composite i.e., NYSE Composite and YS Biopharma go up and down completely randomly.

Pair Corralation between NYSE Composite and YS Biopharma

Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the YS Biopharma. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 7.99 times less risky than YS Biopharma. The index trades about -0.31 of its potential returns per unit of risk. The YS Biopharma Co is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  63.00  in YS Biopharma Co on January 20, 2024 and sell it today you would earn a total of  31.00  from holding YS Biopharma Co or generate 49.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

NYSE Composite  vs.  YS Biopharma Co


NYSE Composite and YS Biopharma Volatility Contrast

   Predicted Return Density   

Pair Trading with NYSE Composite and YS Biopharma

The main advantage of trading using opposite NYSE Composite and YS Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, YS Biopharma 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 YS Biopharma will offset losses from the drop in YS Biopharma's long position.
The idea behind NYSE Composite and YS Biopharma Co 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Equity Valuation
Check real value of public entities based on technical and fundamental data
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Stocks Directory
Find actively traded stocks across global markets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm