Correlation Between MSP RECOVERY and So Young

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

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

Diversification Opportunities for MSP RECOVERY and So Young

0.29

Correlation Coefficient

MSP RECOVERY  So Young

Modest diversification

The 3 months correlation between MSP and So Young is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding MSP RECOVERY INC 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 MSP RECOVERY 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 MSP RECOVERY INC 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 MSP RECOVERY i.e., MSP RECOVERY and So Young go up and down completely randomly.

Pair Corralation between MSP RECOVERY and So Young

If you would invest  80.00  in So Young International on September 16, 2024 and sell it today you would earn a total of  0.00  from holding So Young International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.54%
Values	Daily Returns

MSP RECOVERY INC  vs.  So Young International

MSP RECOVERY INC

Risk-Adjusted Performance

0 of 100

Very Weak

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

So Young International

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in So Young International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, So Young may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with MSP RECOVERY and So Young

The main advantage of trading using opposite MSP RECOVERY and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP RECOVERY 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 MSP RECOVERY INC 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.