Correlation Between YY and A10 Network
Can any of the company-specific risk be diversified away by investing in both YY and A10 Network 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 YY and A10 Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YY Inc Class and A10 Network, you can compare the effects of market volatilities on YY and A10 Network 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 YY with a short position of A10 Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of YY and A10 Network.
Diversification Opportunities for YY and A10 Network
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YY and A10 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding YY Inc Class and A10 Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A10 Network and YY 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 YY Inc Class are associated (or correlated) with A10 Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A10 Network has no effect on the direction of YY i.e., YY and A10 Network go up and down completely randomly.
Pair Corralation between YY and A10 Network
Allowing for the 90-day total investment horizon YY Inc Class is expected to under-perform the A10 Network. In addition to that, YY is 1.14 times more volatile than A10 Network. It trades about -0.02 of its total potential returns per unit of risk. A10 Network is currently generating about 0.07 per unit of volatility. If you would invest 1,322 in A10 Network on December 30, 2023 and sell it today you would earn a total of 47.00 from holding A10 Network or generate 3.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
YY Inc Class vs. A10 Network
Performance |
Timeline |
YY Inc Class |
A10 Network |
YY and A10 Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YY and A10 Network
The main advantage of trading using opposite YY and A10 Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YY position performs unexpectedly, A10 Network 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 A10 Network will offset losses from the drop in A10 Network's long position.YY vs. Axalta Coating Systems | YY vs. NL Industries | YY vs. Dine Brands Global | YY vs. Summit Hotel Properties |
A10 Network vs. SentinelOne | A10 Network vs. BlackBerry | A10 Network vs. Global Blue Group | A10 Network vs. Aurora Mobile |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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