Correlation Between Yum Brands and ANDRADA MINING
Can any of the company-specific risk be diversified away by investing in both Yum Brands and ANDRADA MINING 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 Yum Brands and ANDRADA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yum Brands and ANDRADA MINING LTD, you can compare the effects of market volatilities on Yum Brands and ANDRADA MINING 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 Yum Brands with a short position of ANDRADA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yum Brands and ANDRADA MINING.
Diversification Opportunities for Yum Brands and ANDRADA MINING
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yum and ANDRADA is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yum Brands and ANDRADA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDRADA MINING LTD and Yum Brands 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 Yum Brands are associated (or correlated) with ANDRADA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDRADA MINING LTD has no effect on the direction of Yum Brands i.e., Yum Brands and ANDRADA MINING go up and down completely randomly.
Pair Corralation between Yum Brands and ANDRADA MINING
Assuming the 90 days horizon Yum Brands is expected to under-perform the ANDRADA MINING. But the stock apears to be less risky and, when comparing its historical volatility, Yum Brands is 3.14 times less risky than ANDRADA MINING. The stock trades about -0.02 of its potential returns per unit of risk. The ANDRADA MINING LTD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2.85 in ANDRADA MINING LTD on April 25, 2025 and sell it today you would lose (0.10) from holding ANDRADA MINING LTD or give up 3.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Yum Brands vs. ANDRADA MINING LTD
Performance |
Timeline |
Yum Brands |
ANDRADA MINING LTD |
Yum Brands and ANDRADA MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yum Brands and ANDRADA MINING
The main advantage of trading using opposite Yum Brands and ANDRADA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yum Brands position performs unexpectedly, ANDRADA MINING 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 ANDRADA MINING will offset losses from the drop in ANDRADA MINING's long position.Yum Brands vs. ASURE SOFTWARE | Yum Brands vs. China Yongda Automobiles | Yum Brands vs. Spirent Communications plc | Yum Brands vs. ITALIAN WINE BRANDS |
ANDRADA MINING vs. LIFEWAY FOODS | ANDRADA MINING vs. DFS Furniture PLC | ANDRADA MINING vs. US FOODS HOLDING | ANDRADA MINING vs. Haverty Furniture Companies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |