Correlation Between Veradigm and So Young

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

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

Diversification Opportunities for Veradigm and So Young

-0.34

Correlation Coefficient

Veradigm  So Young

Very good diversification

The 3 months correlation between Veradigm and So Young is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Veradigm 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 Veradigm 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 Veradigm 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 Veradigm i.e., Veradigm and So Young go up and down completely randomly.

Pair Corralation between Veradigm and So Young

If you would invest  1,333  in Veradigm on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Veradigm or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Veradigm  vs.  So Young International

Veradigm

Risk-Adjusted Performance

0 of 100

Very Weak

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

So Young International

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in So Young International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, So Young may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Veradigm and So Young

The main advantage of trading using opposite Veradigm and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veradigm 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.

The idea behind Veradigm and So Young International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.