Correlation Between YanGuFang International and Planet Green

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

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

Diversification Opportunities for YanGuFang International and Planet Green

-0.73

Correlation Coefficient

YanGuFang International  Planet Green

Pay attention - limited upside

The 3 months correlation between YanGuFang and Planet is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding YanGuFang International Group and Planet Green Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Green Holdings and YanGuFang International 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 YanGuFang International Group are associated (or correlated) with Planet Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Green Holdings has no effect on the direction of YanGuFang International i.e., YanGuFang International and Planet Green go up and down completely randomly.

Pair Corralation between YanGuFang International and Planet Green

If you would invest  150.00  in Planet Green Holdings on September 15, 2024 and sell it today you would earn a total of  112.00  from holding Planet Green Holdings or generate 74.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

YanGuFang International Group  vs.  Planet Green Holdings

YanGuFang International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YanGuFang International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, YanGuFang International is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Planet Green Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Green Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Planet Green reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YanGuFang International and Planet Green

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

The idea behind YanGuFang International Group and Planet Green Holdings 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.