Correlation Between Streamline Health and So Young
Can any of the company-specific risk be diversified away by investing in both Streamline Health and So Young 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 Streamline Health and So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Streamline Health Solutions and So Young International, you can compare the effects of market volatilities on Streamline Health and So Young 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 Streamline Health with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Streamline Health and So Young.
Diversification Opportunities for Streamline Health and So Young
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Streamline and So Young is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Streamline Health Solutions and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and Streamline Health 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 Streamline Health Solutions are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of Streamline Health i.e., Streamline Health and So Young go up and down completely randomly.
Pair Corralation between Streamline Health and So Young
Given the investment horizon of 90 days Streamline Health is expected to generate 1.92 times less return on investment than So Young. In addition to that, Streamline Health is 1.79 times more volatile than So Young International. It trades about 0.03 of its total potential returns per unit of risk. So Young International is currently generating about 0.1 per unit of volatility. If you would invest 99.00 in So Young International on March 12, 2024 and sell it today you would earn a total of 20.00 from holding So Young International or generate 20.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Streamline Health Solutions vs. So Young International
Performance |
Timeline |
Streamline Health |
So Young International |
Streamline Health and So Young Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Streamline Health and So Young
The main advantage of trading using opposite Streamline Health and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Streamline Health position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.Streamline Health vs. Bullfrog AI Holdings | Streamline Health vs. EUDA Health Holdings | Streamline Health vs. Mangoceuticals Common Stock | Streamline Health vs. FOXO Technologies |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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