Correlation Between Applied Materials and Yandex NV

Can any of the company-specific risk be diversified away by investing in both Applied Materials and Yandex NV 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 Applied Materials and Yandex NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Applied Materials and Yandex NV, you can compare the effects of market volatilities on Applied Materials and Yandex NV 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 Applied Materials with a short position of Yandex NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials and Yandex NV.

Diversification Opportunities for Applied Materials and Yandex NV

0.0

Correlation Coefficient

Applied Materials  Yandex NV

Pay attention - limited upside

The 3 months correlation between Applied and Yandex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials and Yandex NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yandex NV and Applied Materials 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 Applied Materials are associated (or correlated) with Yandex NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yandex NV has no effect on the direction of Applied Materials i.e., Applied Materials and Yandex NV go up and down completely randomly.

Pair Corralation between Applied Materials and Yandex NV

If you would invest  1,894  in Yandex NV on January 28, 2024 and sell it today you would earn a total of  0.00  from holding Yandex NV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Applied Materials  vs.  Yandex NV

Applied Materials

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Materials are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Applied Materials unveiled solid returns over the last few months and may actually be approaching a breakup point.

Yandex NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yandex NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Yandex NV is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Applied Materials and Yandex NV

The main advantage of trading using opposite Applied Materials and Yandex NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials position performs unexpectedly, Yandex NV 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 Yandex NV will offset losses from the drop in Yandex NV's long position.

The idea behind Applied Materials and Yandex NV 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.