Correlation Between Wuliangye Yibin and China Yangtze
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By analyzing existing cross correlation between Wuliangye Yibin Co and China Yangtze Power, you can compare the effects of market volatilities on Wuliangye Yibin and China Yangtze 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 Wuliangye Yibin with a short position of China Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuliangye Yibin and China Yangtze.
Diversification Opportunities for Wuliangye Yibin and China Yangtze
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wuliangye and China is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Wuliangye Yibin Co and China Yangtze Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yangtze Power and Wuliangye Yibin 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 Wuliangye Yibin Co are associated (or correlated) with China Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yangtze Power has no effect on the direction of Wuliangye Yibin i.e., Wuliangye Yibin and China Yangtze go up and down completely randomly.
Pair Corralation between Wuliangye Yibin and China Yangtze
Assuming the 90 days trading horizon Wuliangye Yibin is expected to generate 9.09 times less return on investment than China Yangtze. In addition to that, Wuliangye Yibin is 2.06 times more volatile than China Yangtze Power. It trades about 0.0 of its total potential returns per unit of risk. China Yangtze Power is currently generating about 0.07 per unit of volatility. If you would invest 2,257 in China Yangtze Power on August 26, 2024 and sell it today you would earn a total of 469.00 from holding China Yangtze Power or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuliangye Yibin Co vs. China Yangtze Power
Performance |
| Timeline |
| Wuliangye Yibin |
| China Yangtze Power |
Wuliangye Yibin and China Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuliangye Yibin and China Yangtze
The main advantage of trading using opposite Wuliangye Yibin and China Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuliangye Yibin position performs unexpectedly, China Yangtze 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 China Yangtze will offset losses from the drop in China Yangtze's long position.| Wuliangye Yibin vs. Sino Platinum Metals Co | Wuliangye Yibin vs. Zhejiang Yongjin Metal | Wuliangye Yibin vs. State Grid InformationCommunication | Wuliangye Yibin vs. Allwin Telecommunication Co |
| China Yangtze vs. Cicc Fund Management | China Yangtze vs. Harvest Fund Management | China Yangtze vs. Kingclean Electric Co | China Yangtze vs. Innovative Medical Management |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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