Correlation Between Hengli Industrial and Yunnan Xiyi
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By analyzing existing cross correlation between Hengli Industrial Development and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Hengli Industrial and Yunnan Xiyi 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 Hengli Industrial with a short position of Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Yunnan Xiyi.
Diversification Opportunities for Hengli Industrial and Yunnan Xiyi
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Yunnan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Hengli Industrial and Yunnan Xiyi
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.18 times more return on investment than Yunnan Xiyi. However, Hengli Industrial is 1.18 times more volatile than Yunnan Xiyi Industrial. It trades about 0.23 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about 0.03 per unit of risk. If you would invest 166.00 in Hengli Industrial Development on September 3, 2024 and sell it today you would earn a total of 64.00 from holding Hengli Industrial Development or generate 38.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Hengli Industrial |
| Yunnan Xiyi Industrial |
Hengli Industrial and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Yunnan Xiyi
The main advantage of trading using opposite Hengli Industrial and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Hengli Industrial vs. China Sports Industry | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Jilin Jlu Communication | Hengli Industrial vs. Guangdong Shenglu Telecommunication |
| Yunnan Xiyi vs. Anhui Huilong Agricultural | Yunnan Xiyi vs. Huasi Agricultural Development | Yunnan Xiyi vs. Shantui Construction Machinery | Yunnan Xiyi vs. Sinomach General Machinery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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