Correlation Between Yunhong CTI and Cadence Design
Can any of the company-specific risk be diversified away by investing in both Yunhong CTI and Cadence Design 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 Cadence Design into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunhong CTI and Cadence Design Systems, you can compare the effects of market volatilities on Yunhong CTI and Cadence Design 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 Cadence Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunhong CTI and Cadence Design.
Diversification Opportunities for Yunhong CTI and Cadence Design
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yunhong and Cadence is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Yunhong CTI and Cadence Design Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadence Design Systems 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 Cadence Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadence Design Systems has no effect on the direction of Yunhong CTI i.e., Yunhong CTI and Cadence Design go up and down completely randomly.
Pair Corralation between Yunhong CTI and Cadence Design
Given the investment horizon of 90 days Yunhong CTI is expected to generate 3.09 times more return on investment than Cadence Design. However, Yunhong CTI is 3.09 times more volatile than Cadence Design Systems. It trades about 0.09 of its potential returns per unit of risk. Cadence Design Systems is currently generating about 0.1 per unit of risk. If you would invest 157.00 in Yunhong CTI on December 29, 2023 and sell it today you would earn a total of 86.00 from holding Yunhong CTI or generate 54.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 49.0% |
Values | Daily Returns |
Yunhong CTI vs. Cadence Design Systems
Performance |
Timeline |
Yunhong CTI |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Cadence Design Systems |
Yunhong CTI and Cadence Design Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yunhong CTI and Cadence Design
The main advantage of trading using opposite Yunhong CTI and Cadence Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunhong CTI position performs unexpectedly, Cadence Design 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 Cadence Design will offset losses from the drop in Cadence Design's long position.Yunhong CTI vs. Cimpress NV | Yunhong CTI vs. Stagwell | Yunhong CTI vs. BOS Better Online | Yunhong CTI vs. 51Talk Online Education |
Cadence Design vs. Kingsoft Cloud HoldingsLtd | Cadence Design vs. C3 Ai Inc | Cadence Design vs. Eventbrite Class A | Cadence Design vs. Daily Journal Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |