Correlation Between Xiangyang Automobile and Yili Chuanning
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyang Automobile Bearing and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Xiangyang Automobile and Yili Chuanning 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 Xiangyang Automobile with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Yili Chuanning.
Diversification Opportunities for Xiangyang Automobile and Yili Chuanning
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiangyang and Yili is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Xiangyang Automobile 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 Xiangyang Automobile Bearing are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Yili Chuanning go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Yili Chuanning
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the Yili Chuanning. In addition to that, Xiangyang Automobile is 3.67 times more volatile than Yili Chuanning Biotechnology. It trades about -0.16 of its total potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.39 per unit of volatility. If you would invest 1,264 in Yili Chuanning Biotechnology on October 16, 2024 and sell it today you would lose (137.00) from holding Yili Chuanning Biotechnology or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Xiangyang Automobile |
| Yili Chuanning Biote |
Xiangyang Automobile and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Yili Chuanning
The main advantage of trading using opposite Xiangyang Automobile and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.The idea behind Xiangyang Automobile Bearing and Yili Chuanning Biotechnology 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.
| Yili Chuanning vs. State Grid InformationCommunication | Yili Chuanning vs. East Money Information | Yili Chuanning vs. Shenzhen SDG Information | Yili Chuanning vs. Guilin Seamild Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world |